Northbound Funds Update | Northbound Funds net bought 2.875 billion, Tracker Fund and domestic bank stocks increased their positions, while oil stocks showed differentiation
On August 27th, Beishui made a net purchase of HKD 2.875 billion in the Hong Kong stock market. The Tracker Fund, China Construction Bank, Xiaomi Group-W, and other individual stocks were added to the position, while CNOOC and Tencent saw net selling. CICC commented that the interest rate cut cycle will affect the situation of the Hong Kong stock market, especially the performance of long-term growth stocks. Galaxy Securities pointed out that financial system reform will promote the improvement of bank asset quality. In the oil sector, PetroChina and Sinopec saw net buying, while CNOOC experienced net selling
According to the Zhitong Finance and Economics APP, on August 27th, in the Hong Kong stock market, Beishui had a net purchase of HKD 2.875 billion. Among them, the net purchase of Hong Kong Stock Connect (Shanghai) was HKD 1.808 billion, and the net purchase of Hong Kong Stock Connect (Shenzhen) was HKD 1.067 billion.
The stocks with the highest net purchases by Beishui were Tracker Fund (02800), China Construction Bank (00939), and Xiaomi Corporation-W (01810). The stocks with the highest net sales by Beishui were CNOOC (00883) and Tencent (00700).
Active trading stocks in Hong Kong Stock Connect (Shanghai)
Active trading stocks in Hong Kong Stock Connect (Shenzhen)
Tracker Fund (02800) received a net purchase of HKD 1.117 billion. On the news front, the latest research report from CICC stated that overseas, the interest rate reduction cycle is about to start. In this regard alone, the Hong Kong stock market has greater resilience, especially in the long-term growth sector. However, it still emphasizes that whether in the Hong Kong stock market or the A-share market in China, the significance of the Fed's interest rate cut lies in providing room for internal policy operations, which is the core determining factor for the trend of the A-share and Hong Kong stock markets, rather than the Fed's interest rate cut itself.
Beishui increased its holdings in domestic bank stocks, with China Construction Bank (00939) and Industrial and Commercial Bank of China (01398) receiving net purchases of HKD 326 million and HKD 81.28 million, respectively. On the news front, Galaxy Securities pointed out that financial system reform continues to deepen, the deployment of the "Five Major Articles" is advancing, focusing on key areas to increase support and promote high-quality development. Bank credit remains reasonably growing with optimized structure. At the same time, the orientation of preventing and resolving financial risks remains unchanged, real estate policies are being optimized, and reforms of small and medium-sized financial institutions are steadily progressing, benefiting the improvement of bank asset quality and risk expectations. In the context of asset scarcity, the dividend value of the banking sector is still favored.
There was differentiation in oil stocks, with PetroChina (00857) and Sinopec (00386) receiving net purchases of HKD 128 million and HKD 54.06 million, respectively, while CNOOC (00883) faced a net sale of HKD 55.06 million. On the news front, stimulated by the tense situation in the Middle East and Libya's suspension of oil exports, oil prices surged by over 3% on Monday. The eastern government of Libya announced on August 26th that all oil fields, ports, and oil facilities face "force majeure" and have stopped all oil production and exports On August 25th, Lebanon and Israel targeted each other's domestic targets, escalating the conflict suddenly, and the market is concerned that the situation will slide towards a regional war.
Geely Auto (00175) received a net purchase of HKD 106 million. In terms of news, Geely Auto previously released its interim performance, achieving operating income of 107.3 billion yuan in the first half of the year, a year-on-year increase of 46.6%; net profit attributable to shareholders was 10.6 billion yuan, a significant increase of 574.7% year-on-year. Haitong Securities pointed out that from January to June 2024, Geely Auto's cumulative sales volume reached 956,000 units, a 41% year-on-year increase; Geely Auto will raise its original annual sales target by about 5%, from 1.9 million units to 2 million units. Geely Auto's brand architecture is relatively reasonable and clear, with the gradual implementation of the "Smart Geely 2025" strategy, the company's overall revenue and net profit attributable to shareholders are expected to continue to grow.
China Mobile (00941) received a net purchase of HKD 79.99 million. In terms of news, China Mobile announced that the company has decided to distribute an interim dividend of HKD 2.60 per share (tax inclusive) for the six months ended June 30, 2024, a 7.0% year-on-year increase. The proportion of profits distributed in cash for the full year of 2024 compared to the shareholders' net profit for the year has further increased compared to 2023, continuously creating greater value for shareholders. In addition, Honor announced that the company has received investment from China Mobile.
In addition, Xiaomi Corporation-W (01810) and China RuYi (00136) received net purchases of HKD 157 million and 27.87 million respectively. Tencent (00700) saw a net sale of HKD 33.8 million