Beishui Movement | Beishui's net buying reached 5.807 billion, Tracker Fund received 900 million Hong Kong dollars for additional holdings, while Hong Kong Exchanges and Clearing Limited faced selling pressure

According to the Zhitong Finance and Economics APP, on June 14th, in the Hong Kong stock market, the net purchase of Beishui amounted to HKD 5.807 billion. Among them, the net purchase of Shanghai-Hong Kong Stock Connect was HKD 3.051 billion, and the net purchase of Shenzhen-Hong Kong Stock Connect was HKD 2.756 billion.

The top three stocks with the highest net purchases by Beishui were Tracker Fund (02800), CHINA MOBILE (00941), and Bank of China (03988). The top three stocks with the highest net sales by Beishui were Hong Kong Exchanges and Clearing Limited (00388), Tencent (00700), and CGN Power (01816).

Active trading stocks in Shanghai-Hong Kong Stock Connect

Active trading stocks in Shenzhen-Hong Kong Stock Connect

Tracker Fund (02800) received a net purchase of HKD 0.933 billion. In terms of news, Haitong Securities pointed out that the main reasons for the rise in Hong Kong stocks in May were the rebound in market expectations of a Fed rate cut, the strengthening of domestic real estate policies, and the improvement in corporate profits. In addition, the recent decline in the AH premium index to a low level, the sharp rise in Hong Kong stocks with high dividend yield assets is an important reason for the rapid decline in the AH premium index recently. The bank believes that the current valuation repair of Hong Kong stocks is relatively sufficient, and the future upside depends on policy expectations and profit recovery.

CHINA MOBILE (00941) received a net purchase of HKD 0.47 billion. In terms of news, Goldman Sachs released a report stating that their view on the three major Chinese telecom stocks, including China Mobile, China Telecom, and China Unicom, remains positive for the second half of the year. They believe that these stocks meet the long-term value evaluation using the dividend discount model, based on clear dividend rate targets, a stable business and profit growth combination, the ability to exceed the dividend target given by pure profit from 2021 to 2026, and the company's willingness to drive shareholder returns and manage market value under state-owned performance indicators.

Bank of China (03988) received a net purchase of HKD 0.41 billion. In terms of news, CITIC Securities believes that the State Council will focus on the impact of the real estate sector on economic operations and financial stability, actively reserve new destocking and market stabilization policies, and the existing collection and storage as well as the exchange of buildings also have a positive effect on the asset quality of banks. Continued real estate financial policies will change the market's expectations of banks' real estate debt risks With the expectation of risk repair, the valuation of bank stocks will have more fundamental support, while solidifying the certainty of bank dividend income space.

CNOOC (00883) received a net purchase of HKD 297 million. On the news front, a report from HSBC Research pointed out that the performance of the Chinese oil giant continues to outperform, rising by 10% to 50% since the beginning of the year, compared to the 7% rise of the Hang Seng Index during the same period. This is mainly due to the rise in oil prices and stable production growth. Against the backdrop of current state-owned enterprise reforms, investors are seeking better resilience in returns. The bank maintains a positive view on oil stocks as the current yield ranges from 6% to 7%, which is still attractive to domestic investors. Coupled with strong cash flow, there may be potential for further dividend increases.

Meituan-W (03690) received a net purchase of HKD 107 million. On the news front, Goldman Sachs believes that Meituan announced that its board of directors has approved a maximum of USD 2 billion for the repurchase of Class B ordinary shares in the open market. The company has roughly completed the USD 1 billion repurchase announced last November 7th, believed to be equivalent to 2.3% of the market value of the new repurchase plan, demonstrating the company's continued commitment to rewarding shareholders. The bank stated that Meituan remains one of the main "buy" recommendations for the second half of the year in the Chinese internet sector, based on strong profit visibility and the potential market size expansion of local services through further online penetration.

China Longyuan Power (00916) received a net purchase of HKD 91.15 million. On the news front, Longyuan Power announced at the end of May that Mr. Gong Yufei resigned as the general manager, and Mr. Wang Liqiang took over, with Mr. Gong Yufei nominated as chairman. HSBC stated that both individuals have previously held different positions in the major shareholders of Longyuan Power, China Energy Group and Shenhua Group. The market seems to believe that this management change can promote the restart of the parent company's injection of renewable energy assets. Morgan Stanley previously stated that Longyuan is upgrading the old wind power projects to small wind turbine units. After the upgrade is completed, the internal rate of return of the wind power project is expected to increase by more than 1.5%.

Tencent (00700) faced a net sale of HKD 144 million. On the news front, Goldman Sachs pointed out that there have been significant differences in the performance of gaming stocks from the beginning of the year to date, mainly due to different traditional gaming growth drivers and different new game performances. The bank expects that the mainland gaming market will remain fiercely competitive for the rest of the year, especially during the summer. In particular, the gaming stocks covered by the bank will launch more games, and promotions will become more aggressive.

Hong Kong Exchanges and Clearing (00388) faced a net sale of HKD 370 million. On the news front, UBS published a research report stating that the average daily turnover of the Hong Kong Exchanges and Clearing in May increased by 38% and 25% year-on-year and month-on-month to HKD 140 billion, mainly driven by improved market sentiment. Southbound average daily turnover increased by 99% to HKD 56 billion. The bank stated that whether the rebound in average daily turnover can continue for the remaining time in 2024 will depend on the performance of Hong Kong stocks and the implementation of policies, such as exempting southbound investors from dividend tax.

In addition, Kuaishou-W (01024) received a net purchase of HKD 77.22 million. Meanwhile, CGN Power (01816), China Resources Power (00836), and SMIC (00981) faced net sales of HKD 41.76 million, HKD 38.74 million, and HKD 10.43 million respectively