Beishui Movement | Beishui's net buying volume reached 473 million, Li Auto plummeted 20% after performance, domestic funds seized the opportunity to buy nearly 700 million Hong Kong dollars on dips

According to the information from Zhitong Finance APP on May 21st, in the Hong Kong stock market, the net purchase of Beishui amounted to HKD 473 million. Among them, the net purchase of Stock Connect (Shanghai) was HKD 781 million, while the net sale of Stock Connect (Shenzhen) was HKD 308 million.

The stocks with the highest net purchases by Beishui were Bank of China (03988), Li Auto-W (02015), and China Construction Bank (00939). The stocks with the highest net sales by Beishui were GF Fund (02800), Tencent (00700), and Hong Kong Exchanges and Clearing (00388).

Active trading stocks in Stock Connect (Shanghai)

Active trading stocks in Stock Connect (Shenzhen)

Beishui funds continued to increase their positions in domestic bank stocks, with Bank of China (03988) and China Construction Bank (00939) receiving net purchases of HKD 1.14 billion and HKD 286 million respectively. On the news front, Minsheng Securities pointed out that the premium of bank A+H shares is still at a historically high level. On the one hand, with the expectation of improved tax policies and support from the funding side, the premium is expected to converge. On the other hand, the discount of H shares also brings dividend advantages, while also considering the relative disadvantages of H-share market liquidity and settlement efficiency. The bank stated that under the high premium of A+H shares, the post-tax dividend yield of bank H shares remains relatively high; if subsequent tax reduction policies can be implemented, the dividend advantage of bank H shares will be further expanded.

Li Auto-W (02015) plummeted nearly 20% today, and Beishui funds bought on dips, with a net purchase of HKD 679 million throughout the day. On the news front, Li Auto announced its first-quarter performance, with total revenue of 25.6 billion yuan, a year-on-year increase of 36.4% but a quarter-on-quarter decrease of 38.6%; net profit attributable to shareholders was 593 million yuan, a year-on-year decrease of 36.26% and a quarter-on-quarter drop of nearly 90%. The company expects second-quarter revenue to be between 29.9 billion yuan and 31.4 billion yuan, lower than the market's estimate of 38.63 billion yuan. In addition, Li Auto has postponed the launch of its all-electric SUV product and continues to adjust its organizational structure, with recent reports of significant layoffs in the company China Mobile (00941) received a net buy of HKD 223 million. On the news front, Morgan Stanley previously pointed out that if the policy of exempting Hong Kong Stock Connect dividends from tax is implemented, it is expected that more funds will flow into Hong Kong-listed Chinese telecommunications stocks, as these stocks offer relatively high dividend returns with a dividend yield of about 8%, and an average annual compound growth rate of over 10%, making them very attractive. The bank maintains a "buy" rating on Chinese telecommunications stocks. In the short term, they are optimistic about China Unicom, while in the long term, they choose China Mobile.

China Vanke (02202) received a net buy of HKD 413.1 million. On the news front, China Vanke announced that in order to meet the development and construction of the Changzhou project, it has applied for a RMB 1.2 billion bank loan from the Shenzhen Branch of Bank of China. Its holding subsidiary, Changzhou Xucheng, has provided equity pledge guarantees for this loan by holding 100% equity of Changzhou Shengxin Real Estate. CITIC Securities stated that at the current stage, the business is more focused on core cities, with smooth financing channels, strong product capabilities, strong local deep cultivation and interactive capabilities, and some high-quality assets to help digest the company's phase-out losses, making it more investment-worthy.

Hong Kong Exchanges and Clearing Limited (00388) faced a net sell of HKD 262 million. Recent reports have indicated that Hong Kong will postpone the implementation of new trading rules during typhoons, with preliminary consideration to officially implement them at the end of this year or early next year. On May 21, Hong Kong Chief Executive Carrie Lam stated during a media meeting that the consultation results on the operation of the Hong Kong Stock Exchange in extreme weather conditions will be announced in July. She emphasized that the government will announce the results in July, but there is no plan to implement them in July.

E Fund Management Co., Ltd. (02800) faced a net sell of HKD 1.845 billion. On the news front, Guoyuan International pointed out that the valuation of Hong Kong stocks is currently relatively low among global asset classes. The expected increase in inflation data has increased the possibility of a Fed rate cut later this year. In this regard, Hong Kong stocks have the conditions for valuation recovery in the medium term, which will exist until there are significant changes in the external market environment. Coupled with the positive sentiment brought by recent favorable domestic real estate policies, the bank believes that there is further upside potential for Hong Kong stocks in the short term. However, due to the relatively weak economic fundamentals and the need for more economic data to confirm the realization of policy benefits.

In addition, CSOP Asset Management Limited (01468) received a net buy of HKD 73.93 million. While CNOOC Limited (00883) and Tencent Holdings Limited (00700) faced net sells of HKD 46.58 million and HKD 832 million, respectively