On November 6 in the Hong Kong stock market, southbound trading recorded a net purchase of HK$2.415 billion. Among this, the Shanghai Stock Connect saw a net purchase of HK$3.908 billion, while the Shenzhen Stock Connect experienced a net sell-off of HK$1.493 billion.

The stocks with the highest net purchases by southbound funds were Tencent (00700), Meituan-W (03690), and Alibaba-W (09988). The stocks with the largest net sales were Yangtze Optical Fibre and Cable (06869) and Kingboard Laminates (01888).

Tencent (00700) received a net purchase of HK$760 million. On November 4, Hunyuan released its latest generation large language model Hy4. Daiwa believes that Hy4 represents a steady incremental improvement, positioning Tencent in the upper tier of open-source models and strengthening the agent productivity foundation for cloud, workplace, and consumer products; the upcoming Hy4 Flash is expected to further enhance its cost-performance positioning.

Meituan-W (03690) received a net purchase of HK$655 million. Everbright Securities issued a research report on Meituan, stating that its food delivery market share remains above 60%, the competitive landscape is becoming more rational, and core businesses have achieved single-month profitability. The instant retail scale is rapidly expanding, overseas Keeta layout is progressing smoothly, the physical AI strategy builds long-term barriers, and loss reduction and efficiency improvement progress exceeds expectations.

Alibaba-W (09988) received a net purchase of HK$595 million. CLSA published a research report expecting Alibaba's performance for the second fiscal quarter ending in late September to be strong, with accelerated cloud business growth, stable e-commerce business, and significantly narrowed instant retail losses. The bank expects group revenue to grow 8.9% year-over-year to RMB 270 billion, with adjusted EBITA surging 230% year-over-year to RMB 29.7 billion.

Hua Hong Semiconductor (01347) received a net purchase of HK$377 million. Hua Hong Semiconductor announced that in the third quarter, it achieved operating revenue of RMB 6.706 billion, a year-over-year increase of 13.95%; net profit was RMB 835 million, up 136.14% year-over-year. In the third quarter, Huali Microelectronics was officially included in the consolidated financial statements, showing significant financial gains and operational synergies in the first quarter of consolidation; excluding the impact of Huali Microelectronics, Hua Hong Semiconductor's original business sales revenue and gross margin exceeded the upper limit of previous quarterly guidance.

Zhipu (02513) received a net purchase of HK$73.92 million. JPMorgan published a research report stating that demand for Chinese AI models is between two demand tiers: programming and broader white-collar work. AI demand beyond programming has appeared later than the bank originally expected, but the bank believes the market is overly pessimistic and remains bullish on the sector, with Zhipu AI as its top pick.

Yangtze Optical Fibre and Cable (06869) and Kingboard Laminates (01888) were net sold for HK$770 million and HK$725 million, respectively. Less than 24 hours after the U.S. midterm election results were released, U.S. Representative Yassamin Ansari stated that Democrats need to pause the development of advanced artificial intelligence at the top of their first-day agenda, regulate uncontrolled industries, and ban artificial superintelligence. Texas Governor-elect Gina Hinojosa also said, "We must halt current data center projects before introducing relevant measures to protect Texans." Additionally, SMIC (00981) and Zhongji Innolight (03308) received net purchases of HK$11.93 million and HK$9.98 million, respectively.