Northbound Fund Flow | Northbound funds net bought 11.673 billion Hong Kong dollars, domestic funds continue to increase their holdings in Hong Kong stocks ETF, rushing to subscribe to Tracker Fund with over 5.6 billion Hong Kong dollars

According to the Zhitong Finance and Economics APP, on August 7th, in the Hong Kong stock market, Beishui had a net purchase of 11.673 billion Hong Kong dollars. Among them, the net buy and sell of the Shanghai-Hong Kong Stock Connect was 6.64 billion Hong Kong dollars, and the net purchase of the Shenzhen-Hong Kong Stock Connect was 5.033 billion Hong Kong dollars.

The stocks with the highest net purchases by Beishui were TRACKER FUND (02800), Tencent (00700), and HSCEI ETF (02828). The stocks with the highest net sales by Beishui were China Telecom (00728) and Industrial and Commercial Bank of China (01398).

Active trading stocks in the Shanghai-Hong Kong Stock Connect

Active trading stocks in the Shenzhen-Hong Kong Stock Connect

Beishui funds continued to aggressively subscribe to Hong Kong stock ETFs, with TRACKER FUND (02800), HSCEI ETF (02828), and Southern HS Tech (03033) receiving net purchases of 5.647 billion, 1.012 billion, and 1.005 billion Hong Kong dollars respectively. On the news front, Yang Chao, a strategist at China Galaxy Securities, stated that the Fed's rate cut window is approaching, the global rate cut cycle is expected to fully open, the Chinese economy "has fluctuations but the momentum is still positive," the A-share market is expected to rise, the overall valuation level of the Hong Kong stock market is relatively low among global stock markets, and there is also a significant rebound opportunity. Guoyuan International believes that the cheap funds that will follow the upcoming Fed rate cut and the relatively cheap valuation of Hong Kong stocks will help attract more funds to the Hong Kong stock market.

Tencent (00700) received a net purchase of 1.096 billion Hong Kong dollars. On the news front, Fuli released a research report stating that monthly game approvals have entered a normal track, with game approvals exceeding 100 each month. It can be seen that the General Administration of Press and Publication of China is supporting the healthy development of this industry. Morgan Stanley published a research report stating that it is expected that Tencent's mainland game revenue will increase by 10 to 15% year-on-year in the second quarter, and international game revenue will increase by 40 to 50% year-on-year. The strong game revenue is expected to offset the potential impact of the economic environment on advertising and payment businesses.

Telecom stocks showed differentiation, with China Mobile (00941) receiving a net purchase of 317 million Hong Kong dollars, while China Telecom (00728) suffered a net sale of 225 million Hong Kong dollars. On the news front, Morgan Stanley expects that the growth of telecommunications service revenue in the second quarter will further slow to 1.9%, the three major telecom stocks will maintain stable dividends, preferring them for their robust profit capabilities, favorable capital expenditure decline cycle, and attractive valuation with a dividend yield of 6 to 7% for the year Meituan-W (03690) received a net purchase of HKD 250 million. On the news front, Citigroup released a report stating that the State Council's "Opinions on Promoting the High-Quality Development of Service Consumption" is positive for the internet and media industries. The bank expects service consumption, including entertainment consumption such as music, movies, online games, and esports, as well as tourism and local services, to remain resilient in a weak macro environment. It is optimistic about accommodation, catering, and beneficiaries of tourism such as Meituan.

China Construction Bank (00939) received a net purchase of HKD 132 million. On the news front, J.P. Morgan released a report stating that they continue to be optimistic about the performance of domestic banks in the second half of the year. They believe that the main beneficiaries will be the safeguarding of bank net profits as regulatory focus shifts, as well as policy support for stable macroeconomic growth prospects in the second half of the year. The bank expects domestic bank income and profits to turn into growth in the second half of the year. J.P. Morgan continues to prefer the four major banks with stable profitability and high yields, namely Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, and Bank of China.

CNOOC (00883) received a net purchase of HKD 26.71 million. On the news front, Goldman Sachs released a report stating that market concerns about macroeconomic recession have led to a nearly 6% drop in international oil prices over the past week. However, the bank questions this performance and believes that oil prices will find support in the coming weeks as they see limited recession risks; crude oil demand remains resilient in Western countries and stable in India; there is very little room for speculative positions to recover. The bank continues to maintain the assumption that Brent crude oil will be between $75 and $90 per barrel next year under the basic scenario.

In addition, Xiaomi Corporation-W (01810), BYD Company Limited (01211), and China Shenhua Energy Company Limited (01088) received net purchases of HKD 157 million, 13.12 million, and 3.35 million respectively