HK Stock Connect Daily Report: ZHONGJI INNOLIGHT Rises 7.58% on Clarification of Order-Cut Rumours - 20261104

I. Market Overview

On November 4, 2026, the three major Hong Kong indices opened lower across the board, dipped in early trade before recovering, stayed weak through the morning and then rallied sharply in the afternoon to close near or at the session high, posting solid gains across the board. The Hang Seng Index closed at 23,919.50, up 1.67%; the Hang Seng TECH Index closed at 3,936.02, up 1.77%; and the Hang Seng China Enterprises Index closed at 8,057.59, up 1.44%. Full-day turnover on the Hang Seng Index reached HKD 236.9 billion, slightly above HKD 236.4 billion a day earlier.

On the board, among Stock Connect constituent stocks, CREALIGHTS rose 26.32%, CCTC rose 19.70%, INGENIC rose 18.25%, CFMEE rose 18.20% and CHIFENG GOLD rose 18.15%; on the downside, BLOKS fell 6.10%, FAMEGLOW fell 5.36%, BRAINAURORA-B and ZHONGYU ENERGY each fell 4.32%, and SMOORE INTL fell 4.12%. Semiconductor, electronic component and gold names filled the top five gainers, while consumer names took two of the five biggest decliners. Across the Stock Connect universe, 511 stocks rose, 134 fell and 20 were unchanged.

Southbound capital recorded net selling of HK$3.277 billion on the day, comprising net selling of HK$3.163 billion via Stock Connect (Shanghai) and HK$114 million via Stock Connect (Shenzhen), with the Shanghai leg about 27.7 times the size of the Shenzhen leg.

II. HK Stock Connect Stock Rankings

2.1 HK Stock Connect Stock Gainers and Decliners

Source: Wind, HKEX. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

2.2 HK Stock Connect Active Stocks (ranked by southbound turnover)

Source: Wind, HKEX. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

III. HK Stock Connect-related A-share ETF Rankings

3.1 HK Stock Connect-related A-share ETF Gainers and Decliners

Source: Wind. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

3.2 HK Stock Connect-related A-share ETF Active Rankings (ranked by turnover)

Source: Wind. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

IV. Industry and Corporate Updates

1. Southbound Net Selling Reaches HK$3.277 Billion as the Tracker Fund Alone Sees HK$5.979 Billion of Net Selling

On November 4, southbound capital recorded net selling of HK$3.277 billion, comprising net selling of HK$3.163 billion via Stock Connect (Shanghai) and HK$114 million via Stock Connect (Shenzhen), with the Shanghai leg about 27.7 times the size of the Shenzhen leg. Broad-based ETFs flipped to net selling from net buying a day earlier: the Tracker Fund of Hong Kong (02800.HK) recorded HK$60 million of buying against HK$6.039 billion of selling, a net outflow of HK$5.979 billion, the largest among southbound-traded stocks. At the stock level flows were mostly positive, led by SMIC (00981.HK) with HK$1.185 billion of net buying, followed by ZHONGJI INNOLIGHT (03308.HK) at HK$557 million, HUA HONG GRACE (01347.HK) at HK$543 million, BABA-W (09988.HK) at HK$431 million and YOFC (06869.HK) at HK$426 million.

2. ZHONGJI INNOLIGHT Addresses Order-Cut Talk as H Shares Rise 7.58%

On the evening of November 3, ZHONGJI INNOLIGHT (03308.HK) published a record of investor activities responding to market talk that overseas customers were trimming demand or cancelling orders. The company said the vast majority of overseas customers had not cut demand or orders, that a small number had made structural product adjustments, and that some customers had actually increased 1.6T demand. It said the bulk of 2027 orders already covers the full year, at least one key customer has given clear guidance for 2028 while guidance from others is still being collected, and data centre customers are taking delivery at a normal pace with optical module supply still tight and no abnormal inventory build-up. On November 4, its H shares closed 7.58% higher at HK$667.00 on turnover of HK$4.503 billion and a turnover rate of 11.25%, after falling 10.92% in the previous session.

3. Innovative Drug and CXO Chain Leads as the Wanjia and Invesco Innovative Drug ETFs Each Rise 9.58%

On November 4, Hong Kong innovative drug and CXO names advanced across the board. The Wanjia CSI HK Equities Innovative Drugs ETF (520700) rose 9.58% on RMB 997 million of turnover and a turnover rate of 114.34%; the Invesco Great Wall CSI HK Equities Innovative Drugs ETF (513780) rose 9.58% on RMB 914 million; the Harvest CSI HK Equities Innovative Drugs ETF (520970) rose 9.40%; the GF CSI HK Innovative Drugs Industry ETF(QDII) (513120) rose 9.25% on RMB 9.924 billion; the Huatai-PB Hang Seng Biotechnology Technology ETF (513930) rose 9.02%; and the ChinaAMC CSI HK Equities Health Care Theme ETF (520510) rose 8.98%. On the industry side, 29 Chinese innovative drug studies were selected for late-breaking abstracts at the 2026 ESMO Congress, about one third of the total; data released by the National Medical Products Administration in September showed that out-licensing deals by Chinese innovative drug developers had topped USD 120 billion this year. On policy, the National Healthcare Security Administration said on October 20 that the 2026 national medical insurance drug catalogue and the commercial insurance innovative drug catalogue had completed on-site negotiation, bidding and price consultation, with 124 out-of-catalogue drugs entering negotiation and bidding and 12 drugs entering price consultation under the commercial insurance list; the new catalogues are expected to be released before the end of November.

4. China-Korea Semiconductor ETF Tops Turnover at RMB 31.566 Billion with a 313.05% Turnover Rate

On November 4, turnover in Stock Connect-related ETFs expanded markedly. The Huatai-PB China Securities Han Stock Exchange China Korea Semiconductor ETF(QDII) (513310) rose 6.84% on RMB 31.566 billion of turnover and a turnover rate of 313.05%, ranking first; the GF CSI HK Innovative Drugs Industry ETF(QDII) (513120) ranked second at RMB 9.924 billion; the E Fund CSI Hong Kong Securities Investment Theme ETF (513090) rose 0.74% on RMB 4.271 billion; and the ChinaAMC Hang Seng Technology ETF(QDII) (513180) rose 2.08% on RMB 2.626 billion. On the decliner side, the Harvest S&P Oil & Gas Exploration and Production Selected Industry ETF(QDII) (159518) fell 2.94%, the Fullgoal product (513350) fell 2.92% and the Invesco Great Wall S&P Consumption Selected ETF(QDII) (159529) fell 2.11%.

5. Hang Seng TECH Index Methodology Revised, First Quarterly Review Due November 20

On October 7, Hang Seng Indexes Company published the revised methodology for the Hang Seng TECH Index, raising the constituent count to 50 from 30, with 40 chosen by market capitalisation and 10 by revenue growth over the past 12 months, removing the requirement that candidates belong to designated industries and expanding technology sub-themes to 24 from 16. The changes are implemented in the index review for the period ended September 30, 2026 and take effect with the December 2026 index rebalancing, with the first quarterly review results under the new methodology due to be announced on November 20. Hang Seng Indexes Company estimates that the existing 30 constituents will carry about 90% of the index weight, with the 20 additions accounting for about 10%.