On September 1 in the Hong Kong stock market, northbound capital recorded net buying of HK$11.942 billion, with Shanghai-Hong Kong Stock Connect contributing HK$5.659 billion in net buying and Shenzhen-Hong Kong Stock Connect adding HK$6.283 billion in net buying. The top net buying targets were BABA-W (09988), Tencent (00700), and BYD COMPANY (01211). Xiaomi Group-W (01810) was the most net sold stock.

**Shanghai-Hong Kong Stock Connect Active Trading Stocks** **Shenzhen-Hong Kong Stock Connect Active Trading Stocks**

BABA-W (09988) received net buying of HK$4.92 billion. On the news front, Orient Securities highlighted that Alibaba's two major business segments delivered outstanding performance this quarter. AI cloud growth drove sequential acceleration in cloud business with CAPEX investment reaching new highs; food delivery losses remained controllable while generating synergistic effects for the main platform. Food delivery investments not only resulted in significant growth in order volume and market share but also demonstrated synergistic effects reflected in user and CMR growth. The firm believes the company's cloud acceleration represents the beginning of a new AI cycle, with domestic and overseas AI computing demand resonating alongside the company's sustained high investment in computing power and cloud infrastructure. The company's food delivery strategy execution has been highly efficient with investment results exceeding expectations.

Tencent (00700) received net buying of HK$1.234 billion. On the news front, Tencent's mobile game "Valorant" has shown impressive market performance since launch. Morgan Stanley predicts the game's first-year total revenue could reach RMB 5-6 billion. The firm noted that following the recent successful launch of "Delta Force," the strong performance of mobile "Valorant" helps Tencent further expand market share in the mobile FPS gaming segment. Morgan Stanley emphasized that based on Tencent's consistently stable performance of evergreen gaming products, combined with strong deferred revenue support from its international gaming business, confidence in Tencent's gaming business development has been further enhanced after Q2.

BYD COMPANY (01211) received net buying of HK$809 million. On the news front, J.P. Morgan stated that with anti-involution measures taking effect, industry discounts began narrowing in June. Management expects profitability to rebound starting in Q3. Long-term, the firm's view remains unchanged, particularly bullish on BYD's overseas expansion progress, with capacity construction in Indonesia, Brazil, and Hungary completed one to two quarters ahead of schedule. The firm expects overseas business contribution to total group profit to increase from approximately 40% this year to 50%.

INNOVENT BIO (01801) received net buying of HK$321 million. On the news front, CLSA released a research report stating that Innovent Bio's interim results exceeded expectations, with first-half sales growing 50.6% year-over-year, turning from loss to profit with net profit reaching RMB 834 million, beating expectations. The group's approved GLP-1 dual agonist and upcoming IL-23 launch will further drive profit growth, while the highly anticipated PD-1/IL-2 drug IBI363 is ready for global MRCT trials targeting I/O relapsed squamous non-small cell lung cancer, and its CLDN18.2 ADC is conducting second MRCT trials for pancreatic cancer.

Hua Hong Semiconductor (01347) and SMIC (00981) received net buying of HK$137 million and HK$99.7 million respectively. On the news front, Hua Hong previously announced plans to acquire 97.5% equity in Huali Microelectronics through share issuance and cash payment while raising supporting funds. SMIC indicated it is planning to issue A-shares to acquire 49% minority stake in SMIC Beijing. Bank of China International noted that for semiconductor foundries, acquiring remaining equity or related assets of subsidiaries helps improve operational and decision-making efficiency and enhance overall asset quality, with related companies and the industry chain expected to benefit continuously, suggesting attention to domestic chip industry chains. Additionally, Alibaba's single-quarter AI+cloud Capex reached RMB 38.6 billion, with a three-year plan of RMB 380 billion to build AI infrastructure, driving computing power demand expansion.

Meitu (01357) received net buying of HK$118 million. On the news front, Morgan Stanley research report expressed optimism about Meitu's long-term growth potential, based on management's clear development path, focused strategic positioning, generative AI capabilities, and prudent business scope, reiterating "Overweight" rating and raising target price from HK$14.4 to HK$15.7. The firm noted that Meitu targets increasing total paying ratio to 8-10% from 2025-2028, implying subscription revenue could double from 2024's 4.7%. The company is also rebuilding overseas lifestyle product lines targeting US and EU markets; existing lifestyle products in the US market achieve approximately 50% paying ratio.

Xiaomi Group-W (01810) faced net selling of HK$1.035 billion. On the news front, Xiaomi Auto's official Weibo posted on September 1 that Xiaomi Auto deliveries continued to exceed 30,000 units in August 2025. Bank of Communications International previously released a research report stating that Xiaomi's Q2 performance was somewhat affected by the smartphone business. For smartphones, gross margin may stabilize and recover with high-end new product launches. This quarter's smartphone gross margin trend declined faster than the institution's previous forecast. The institution believes memory price increases' impact on gross margin may last at least until the end of 2025.