According to data from the Hong Kong stock market on October 9, southbound trading recorded a net purchase of HK$291 million. Of this, the Shanghai-Hong Kong Stock Connect saw a net sell-off of HK$2.331 billion, while the Shenzhen-Hong Kong Stock Connect recorded a net purchase of HK$2.622 billion.

The stocks with the highest net buying by southbound funds were AIA (ASX: 01299), BABA-W (ASX: 09988), and Z.AI (ASX: 02513). The stocks with the highest net selling were the Tracker Fund of Hong Kong (ASX: 02800), Yangtze Optical Fibre and Cable (ASX: 06869), and SMIC (ASX: 00981).

AIA (ASX: 01299) received net buying of HK$1.066 billion. Bank of America Securities noted that AIA plunged 5% on the first day of China's Golden Week holiday, while the Hang Seng Index fell 3% over the same period. The bank pointed out that similar high volatility on the first day of Golden Week has been observed over the past six years, and the first-day performance does not predict the trajectory for the entire month of October. The sharp decline was primarily due to thin trading volumes and the absence of southbound capital inflows, rather than fundamental issues. The bank reiterated its "Buy" rating with a target price of HK$95.

BABA-W (ASX: 09988) received net buying of HK$611 million. UBS published a research report stating that Alibaba's cloud business growth and margin performance for the second fiscal quarter ending in September may come in stronger than expected. Combined with prudent investment, this is believed to lay the foundation for a rebound in earnings per share. Benefiting from profit growth in Alibaba Cloud and better-than-expected e-commerce margins, the bank currently expects quarterly total revenue to grow 8.6% year-on-year, with adjusted EBITA projected to reach RMB 30 billion, exceeding the market forecast of RMB 26.8 billion.

Z.AI (ASX: 02513) and MINIMAX-W (ASX: 00100) received net buying of HK$363 million and HK$51.43 million, respectively. Recently, Amazon Web Services (AWS), through its large language model service platform Amazon Bedrock, officially announced integration with Z.AI's GLM-5.3. AWS will share revenue with Z.AI based on model usage volume. This marks the second time within a week that a Chinese large model has entered the settlement system of a global top-tier platform.

CNOOC (ASX: 00883) received net buying of HK$58.63 million. According to the latest Short-Term Energy Outlook report released by the EIA, the 2026 average price forecast for global benchmark Brent crude has been raised to approximately US$98 per barrel, 8% higher than the previous forecast. Meanwhile, the fourth-quarter average price forecast for Brent stands at approximately US$105 per barrel, 15% above the EIA's previous estimate.

Yangtze Optical Fibre and Cable (ASX: 06869), SMIC (ASX: 00981), and Kingboard Laminates (ASX: 01888) were hit by net selling of HK$557 million, HK$260 million, and HK$180 million, respectively. Reports indicated that OpenAI's annualized revenue scale is US$20 billion lower than the level the company had previously disclosed. Although the US$20 billion gap does not stem from business deterioration but rather from a systematic discrepancy in accounting methodology, the market remains concerned that if AI application companies' actual revenues fall short of previous expectations, their future capacity and willingness to expand computing power, procure chips, and build data centers could also be affected.

The Tracker Fund of Hong Kong (ASX: 02800) was hit by net selling of HK$1.819 billion. Kenny Ng, a strategist at Everbright Securities International, said that the overnight decline in US Treasury yields was one of the main factors driving the Hong Kong stock market rebound. Strong demand at US Treasury auctions alleviated market concerns about a high interest rate environment, boosting large-cap technology stocks. However, the market has yet to show a clear signal of reversing the downtrend, and if liquidity conditions and the external environment do not improve further, Hong Kong stocks could continue their adjustment pattern next week.

Additionally, GenScript Biotech (ASX: 01548) received net buying of HK$169 million, while Tencent (ASX: 00700) was hit by net selling of HK$258 million.