On September 11, southbound capital flows in the Hong Kong stock market recorded a net purchase of HK$4.431 billion. The Shanghai-Hong Kong Stock Connect saw a net buying of HK$3.192 billion, while the Shenzhen-Hong Kong Stock Connect registered a net buying of HK$1.239 billion. ZJ INNOLIGHT (03308), Southern Hang Seng Tech (03033), and Alibaba-W (09988) emerged as the top beneficiaries of net inflows, whereas SMIC (00981) and CNOOC (00883) led the net selling list.
Southern Hang Seng Tech (03033) attracted net buying of HK$936 million. While recent internet earnings reports have not significantly exceeded expectations, the underlying fundamentals continue to show resilience. Analysts suggest that the current adjustment in Hong Kong stocks is largely driven by concentrated shocks to overseas liquidity and risk appetite. After successive valuation compression, the risk-reward ratio for the sector has notably improved. If rate hike expectations do not escalate further, technology assets that were previously pressured by rising interest rates could exhibit some potential for valuation recovery.
ZJ INNOLIGHT (03308), Yangtze Optical Fibre and Cable (06869), and Cambridge Industries (06166) secured net purchases of HK$648 million, HK$421 million, and HK$51.55 million, respectively. The final rules from the US Federal Communications Commission (FCC) have officially taken effect. Notably, Chinese optical communications supply chain companies, including ZJ INNOLIGHT, Eoptolink, Dongshan Precision, and T&S Communications, were not directly included in the FCC's restricted list. Analysts interpret this as a sign that the most extreme pessimistic assumptions regarding FCC actions have largely not materialized, especially with higher policy certainty for passive components. Overall, this development is viewed as positive for risk sentiment in the optical communications sector.
Alibaba-W (09988) received net buying of HK$514 million. On September 11, at the 2026 Bund Conference, Ant Group announced the upgrade of GPASS to "Lingying," positioning it as an Agent-native operating system and open platform for new terminals like AI glasses, offering capabilities in interaction, runtime, multi-device collaboration, and security trust. Additionally, Alipay unveiled plans to launch an AI wallet agent, introduce three "AI collection" capabilities—VibePay, SkillPay, and MachinePay—and new scenarios such as AI subscription purchases, AI-assisted sales, and AI-assisted reservations.
Zhipu AI (02513) saw net buying of HK$457 million. DeepSeek announced a price reduction for DS V4 Flash, effective September 10. Morgan Stanley noted in a research report that even after the price cut, DS V4 Flash remains priced higher than its April launch level and is also more expensive than Qwen3.8-flash and GLM5.3-flash. While price competition for Flash models may intensify, gross margins remain crucial. The bank does not anticipate a disorderly price war.
Kingboard Laminates (01888) attracted net buying of HK$290 million. Institutional research indicates that in August, the price of 7628 electronic fabric from distributors reached RMB 15 per meter, followed by another 10-20% increase in September. Currently, the factory price for 7628 electronic fabric stands at RMB 11-12 per meter, marking an acceleration in price hikes for three consecutive months. Guotai Junan Securities pointed out that since the second quarter of this year, traditional electronic fabric and FR-4 copper clad laminates have entered an accelerated price increase cycle. As a rare integrated player spanning from fabric to laminate, the company is expected to show more significant elasticity.
CNOOC (00883) experienced net selling of HK$17.15 million. Foreign ministers from the six Gulf Cooperation Council states are scheduled to meet with Iran's foreign minister in Oman on September 14 to seek a temporary agreement for merchant vessel passage. Meanwhile, the Houthi group announced a ceasefire along the Red Sea's western coast. With easing tensions on both strategic waterways, international oil prices declined accordingly.
Additionally, Tencent (00700) and Quantsphile (02685) recorded net buying of HK$206 million and HK$7.97 million, respectively, while SMIC (00981) faced net selling of HK$170 million.