Data from Hong Kong stock market trading on September 17 shows southbound capital recorded a net purchase of HK$3.363 billion. Specifically, the Shanghai-Hong Kong Stock Connect posted net buying of HK$2.502 billion, while the Shenzhen-Hong Kong Stock Connect registered net purchases of HK$861 million.
Leading the net buying list were Z.AI (02513), KB LAMINATES (01888), and TENCENT (00700). On the selling side, the most significant net outflows were seen in BABA-W (09988), CNOOC (00883), and SMIC (00981).
Z.AI (02513) attracted the largest inflow, with net purchases of HK$1.828 billion. During a conference call, Z.AI's management expressed confidence in raising the year-end ARR guidance from US$2.4 billion to US$3 billion, noting that the company's full-business ARR has already reached US$1.8 billion. Within one month of the GLM-5.3 launch, Z.AI's Co-work division has surpassed RMB 1 billion in order value, signaling a shift from validation phase to production-grade deployment with the emergence of scaled revenue.
KB LAMINATES (01888) secured net buying of HK$305 million. In August, the 7628 electronic fabric distributor price reached RMB 15 per meter, followed by another 10-20% rise in September. Manufacturers are now quoting RMB 11-12 per meter for 7628 electronic fabric, with price increases accelerating for three consecutive months. Guotai Haitong Securities noted that traditional electronic fabric and FR-4 copper clad laminates entered an accelerated price hike cycle starting in the second quarter, and KB Laminates, as a rare integrated player spanning fabric to laminate production, is positioned for greater earnings elasticity.
TENCENT (00700) saw net buying of HK$240 million. HSBC research indicates that Tencent's "Honor of Kings: ACE" launched on mobile and PC platforms on September 10. The bank estimates that, based on early popularity similar to "Teamfight Tactics," the game could generate approximately RMB 3.6 billion in total gross revenue over its first twelve months, though reaching full potential will take time.
Optical communication stocks showed clear divergence, with Cambridge Technology (06166) attracting net buying of HK$91.05 million, while Zhongji Innolight (03308) and Yangtze Optical Fibre (06869) witnessed net selling of HK$16.61 million and HK$50.84 million respectively. Recent calls from US AI giants to "slow down" have sparked concerns about reduced AI spending. Citi believes these worries are significantly overstated, arguing that persistent growth in AI inference demand combined with ongoing supply constraints will support continued capital investment expansion across the entire ecosystem.
CNOOC (00883) faced net selling of HK$417 million. EIA data showed US crude inventories fell by 640,000 barrels last week, compared with a previous decline of 391,000 barrels and a median estimate of a 1.5 million barrel draw. Additionally, the Federal Reserve unanimously approved a 25 basis point rate increase, bringing the federal funds target range to 3.75%-4.00%, marking the first hike since July 2023. Meanwhile, Saudi Aramco is working to bypass a damaged section of its pipeline, planning to restore about half of its capacity within days.
Other notable net selling included GenScript Biotech (01548), SMIC (00981), and BABA-W (09988), which saw outflows of HK$27.8 million, HK$147 million, and HK$425 million respectively.