<h3>Current Situation of the Three Major Indices</h3>
<ul>
<li>Hang Seng Index (HSI): Up 0.18%, at 26,696.41 points</li>
<li>Hang Seng China Enterprises Index (HSCE): Up 0.19%, at 9,461.39 points</li>
<li>Hang Seng Tech Index (HSTECH): Up 0.15%, at 5,924.39 points</li>
</ul>
<p>The overall market saw 1,106 stocks rise, 1,085 stocks fall, and 933 stocks remain flat.</p>
<hr/>
<h3>Sector Performance</h3>
<h4>Financial Services Sector</h4>
<p>The sector experienced slight fluctuations, with banks and insurance sectors receiving capital inflows, showing a neutral overall performance. Investors are in a wait-and-see atmosphere, favoring quality blue-chip stocks.</p>
<ul>
<li>Trip.com Group -S (9961.HK): Up 1.07%, with a transaction volume of HKD 827 million. Supported by the continuation of the summer travel peak season and a solid industry fundamentals. Continuous inflow of southbound funds has driven a moderate rise in stock prices. Market expectations for the company's performance growth have increased.</li>
<li>China Pacific Insurance (2328.HK): Down 2.67%, with a transaction volume of HKD 689 million. Increased competition in the property insurance market and pressure on rates. Market concerns about the industry's profitability have intensified. Significant short-term capital outflows.</li>
<li>Guotai Junan International (1788.HK): Up 2.65%, with a transaction volume of HKD 392 million. Benefiting from stable financial policies and favorable expansion of investment banking business. Analysts' positive evaluations have enhanced market confidence. The sector rotation has attracted some defensive capital to increase allocation.</li>
</ul>
<h4>Technology Hardware and Equipment Sector</h4>
<p>The sector overall weakened, with leading chip stocks plummeting, showing significant internal differentiation. Southbound funds remain cautious towards some core targets.</p>
<ul>
<li>Xiaomi Group -W (1810.HK): Up 1.46%, with a transaction volume of HKD 6.537 billion. The recovery in smartphone demand and favorable AI layout have stimulated stock prices. Improvement in channel inventory has raised profit expectations. Growth in overseas market share contributes to positive expectations.</li>
<li>SMIC (981.HK): Down 2.74%, with a transaction volume of HKD 5.178 billion. Under the adjustment cycle of the semiconductor industry, profit expectations are under pressure. The global supply-demand relationship for wafers has not yet improved, and the sector's high valuations have triggered short-term avoidance. Significant outflows of institutional funds.</li>
<li>Hua Hong Semiconductor (1347.HK): Down 3.65%, with a transaction volume of HKD 2.672 billion. Market concerns about declining capacity utilization have dragged down the overall trend. The secondary market sentiment is cautious, with funds actively reducing holdings. The industry's prosperity has not shown significant recovery.</li>
</ul>
<h4>Real Estate Sector</h4>
<p>The sector rose against the trend, with outstanding performance from quality leaders. Southbound funds flowed in actively, revealing structural opportunities.</p>
<ul>
<li>Beike -W (2423.HK): Up 2.98%, with a transaction volume of HKD 606 million. The position of intermediaries and internet platforms is solid, and marginal relaxation of industry policies is favorable for performance expectations. Capital games are prominent, enhancing the sector's elasticity.</li>
<li>China Resources Land (1109.HK): Up 1.93%, with a transaction volume of HKD 547 million. Attracting incremental funds with land reserves and operational advantages. Expectations of policy easing boost sector confidence. The valuation repair space for leading companies is released</li>
<li>Sun Hung Kai Properties (16.HK): Up 2.76%, turnover of HKD 440 million. The local real estate leader in Hong Kong is boosted by capital inflow. High dividends and cash flow advantages are recognized by investors. Stabilizing bank interest rate expectations promote valuation recovery.</li>
</ul>
<hr/>
<h3>Market Focus</h3>
<p><strong>1. Core Macro and Industry Focus:</strong> In the past month, the Federal Reserve maintained its stance during the June interest rate meeting, <strong>with expectations for interest rate cuts this year being lowered, the US dollar index operating at a high level, leading to fluctuations in the RMB and HKD exchange rates, and an expansion of cross-market interest rate spreads</strong>. <strong>China's CPI rose 0.3% year-on-year in May, with a narrowing decline in PPI, overall domestic demand improving, but the manufacturing PMI remains below the boom-bust line, indicating ongoing economic recovery pressures</strong>, which directly affect Hong Kong stock sentiment and the performance of related cyclical sectors.</p>
<p><strong>2. Capital Flow:</strong> This week, southbound funds <strong>net bought HKD 11.6 billion</strong>, with Tencent Holdings and Alibaba net buying over <strong>HKD 1.5 billion and HKD 1 billion</strong>, respectively, leading the short-term market rotation. <strong>Hong Kong stocks saw a significant increase in trading volume throughout the week, with short selling ratios hitting a yearly high</strong>, reflecting a shift in capital allocation from growth sectors to undervalued blue-chip stocks, indicating a change in market style.</p>
<h3><strong>Popular Active Stocks</strong></h3>
<p><strong>1. XPeng-W (09868) surged against the market trend, closing up 17.93% at HKD 108.5.</strong></p>
<p>Recently, at the 2025 XPeng Technology Day, XPeng announced four important applications around &#34;Physical AI,&#34; including the second-generation VLA large model, XPeng Robotaxi, the new generation IRON humanoid robot, and the Huitian flying car. The debut of the female robot and its highly human-like gait attracted significant attention.</p>
<p>Citi believes that although XPeng is currently in the early stages of quantifying the profitability of its new business, it will bring positive market sentiment to the stock and help its valuation gradually rise from past new energy vehicle levels to a higher premium level linked to AI, technology, and Robotaxi.</p>
<p><strong>2. Ruipu Lanjun (00666) remained strong throughout the day, closing up 10.27% at HKD 15.79.</strong></p>
<p>Policy support boosts the high prosperity of the energy storage industry. On November 10, the National Development and Reform Commission and the National Energy Administration issued guidelines to promote the consumption and regulation of new energy, emphasizing the advancement of safe and efficient new energy storage construction. According to the ICC Xinluo Energy Storage Database, Ruipu Lanjun achieved over 50GWh of energy storage battery shipments from January to September 2025, successfully ranking among the top global energy storage battery suppliers.</p>
<p><strong>3. Hesai-W (02525) rose ahead of earnings, closing up 7.07% at HKD 187.9.</strong></p>
<p>Hesai plans to hold a board meeting on November 11 to consider and approve (including) the unaudited quarterly performance of the company and its subsidiaries for the three and nine months ending September 30, 2025. Notably, the ranking of vehicle-mounted lidar installations from the GaiShi Automotive Research Institute shows that Hesai's vehicle-mounted main lidar installations continued to rank first in the industry in August
<strong>4. Weisheng Holdings (03393) reached a new high since its listing, closing up 6.89% at HKD 15.36.</strong></p>
<p>Zhongtai International previously pointed out that as the AI industry rises globally, the electricity demand from data centers is also increasing, promoting the expansion of the company's intelligent distribution business. The company's business positioning has also expanded from traditional industries to advanced technology, providing re-evaluation opportunities and breaking through the valuation framework of the Hong Kong stock industrial sector. The firm has made a technical adjustment to its profit forecast based on the latest report data, raising the target price from HKD 11.65 to HKD 17.40.</p>
<p><strong>5. Maoyan Entertainment (01896) performed well, closing up 5.7% at HKD 7.98.</strong></p>
<p>According to Maoyan Professional Edition data, the movie &#34;Demon Slayer: Kimetsu no Yaiba - Infinity Castle Chapter 1: Akaza Strikes Again&#34; broke 100 million in total box office for previews and pre-sales in the first four days, with midnight show pre-sales exceeding 10 million. It is reported that the film previously earned USD 239 million in Japan and USD 133 million in North America. In addition, &#34;Now You See Me 3&#34; is scheduled for November 14, and &#34;Zootopia 2&#34; is scheduled for November 26. Institutions suggest paying attention to the box office performance of imported films.</p>
<hr/>
<h3>Top Ten Stocks by Trading Volume</h3>
<ol>
<li>Alibaba (9988.HK), trading price HKD 160.40, decline 1.84%, trading volume HKD 11.7 billion</li>
<li>XPeng (9868.HK), trading price HKD 108.50, increase 17.93%, trading volume HKD 9.021 billion</li>
<li>Tencent Holdings (700.HK), trading price HKD 650.00, increase 0.08%, trading volume HKD 8.484 billion</li>
<li>Xiaomi Group (1810.HK), trading price HKD 42.98, increase 1.46%, trading volume HKD 6.537 billion</li>
<li>SMIC (981.HK), trading price HKD 72.65, decline 2.74%, trading volume HKD 5.178 billion</li>
<li>Meituan (3690.HK), trading price HKD 102.00, decline 1.26%, trading volume HKD 4.198 billion</li>
<li>Hua Hong Semiconductor (1347.HK), trading price HKD 75.25, decline 3.65%, trading volume HKD 2.672 billion</li>
<li>Pop Mart (9992.HK), trading price HKD 223.20, increase 0.81%, trading volume HKD 2.476 billion</li>
<li>AIA Group (1299.HK), trading price HKD 82.35, increase 1.29%, trading volume HKD 2.412 billion</li>
<li>China Mobile (941.HK), trading price HKD 88.50, increase 0.80%, trading volume HKD 1.970 billion</li>
</ol>

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<p>The performance of major Hong Kong stock indices is mixed, with the Hang Seng Tech Index slightly declining due to pressure from the chip sector, while real estate stocks are performing strongly against the trend. Southbound funds continue to flow into undervalued blue chips, indicating a clear structural differentiation in the market. The technology hardware and semiconductor sectors are under pressure, with Hua Hong Semiconductor experiencing a significant drop, while leading real estate companies like Beike are rebounding against the trend. External policies and mainland economic data jointly influence risk appetite and the flow of funds</p>

- The Hang Seng Index (HSI) rose by 0.18% to 26,696.41 points, with mixed performance across sectors.  
- Notable movements included Ctrip Group increasing by 1.07% due to strong summer travel demand, while China Pacific Insurance fell by 2.67% amid heightened competition.  
- Overall, southbound capital inflows reached HKD 11.6 billion, indicating a shift in market focus from growth stocks to undervalued blue chips.

Market Heartbeat

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XPENG-W

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XIAOMI-W

SMIC

BEKE-W

Hong Kong stocks close | Take off! XPeng closed up nearly 18%, marking the largest single-day increase since July 2023