Beishui Movement | Beishui net sold 1.838 billion, Li Auto received 700 million additional holdings, domestic bank stocks, Hong Kong stock ETFs were sold off

According to the Zhitong Finance and Economics APP, on August 29th, in the Hong Kong stock market, Beishui had a net selling of HKD 1.838 billion. Among them, the net selling through the Shanghai-Hong Kong Stock Connect was HKD 1.183 billion, and the net selling through the Shenzhen-Hong Kong Stock Connect was HKD 0.655 billion.

The top three stocks with the highest net buying by Beishui were Li Auto-W (02015), China Mobile (00941), and BYD Electronics (00285). The top three stocks with the highest net selling by Beishui were GF Fund (02800), CNOOC (00883), and SF Technology (03033).

Active trading stocks through the Shanghai-Hong Kong Stock Connect

Active trading stocks through the Shenzhen-Hong Kong Stock Connect

Li Auto-W (02015) had a net buying of HKD 0.753 billion. In terms of news, Li Auto released its performance report. In the first half of the year, Li Auto's total revenue was RMB 57.312 billion, a year-on-year increase of 20.81%; net profit was RMB 1.695 billion, a year-on-year decrease of 47.4%; gross profit margin was 20%, a year-on-year decrease of 1.2 percentage points, mainly due to the decrease in vehicle gross profit margin. Daiwa published a report stating that Li Auto's second-quarter operational performance generally met expectations, but lower interest and investment income dragged down net profit margin; Macquarie expressed confidence in the profit potential of the L6 model and believed that the company is still expected to maintain a gross profit margin of over 20% this year.

China Mobile (00941) had a net buying of HKD 0.156 billion. In terms of news, Morgan Stanley stated that telecom industry stock prices have fallen by 15% since the middle of last month, reflecting market concerns about weak second-quarter performance. The bank maintained an "overweight" rating on China Mobile and as the industry's top pick, based on relative defense, and the clarity of a 7% dividend yield and an increase in the dividend payout ratio to over 75% by 2026.

BYD Electronics (00285) had a net buying of HKD 0.113 billion. In terms of news, BYD Electronics announced its interim results, with first-half revenue of RMB 78.581 billion, a year-on-year increase of 39.9%; attributable net profit to shareholders was RMB 1.518 billion, a year-on-year increase of 0.1%. During the period, gross profit increased by approximately 22.01% to RMB 5.379 billion, and the gross profit margin decreased from 7.85% in the same period last year to approximately 6.85% in the period, mainly due to changes in sales structure Chinese banks such as Industrial and Commercial Bank of China (01398) and China Construction Bank (00939) faced net sales of HKD 67.62 million and HKD 81.10 million respectively. On the news front, analysis institutions pointed out that in the process of style rotation, banking stocks, previously seen as safe-haven assets, played the role of cash machines during the pullback in style. In addition, some banks disclosed their performance on August 28, which was lower than some investors' expectations, affecting market sentiment. Tianfeng Securities pointed out that in the long term, there may be two conditions for a high dividend yield excess return reversal: first, the central long-term government bond interest rate no longer declines, and second, the dividend yield of high dividend yield sectors is further hindered from increasing. Patience is still needed to wait for more right-side signals for long-term style rotation.

Shenzhou International (02313) faced net sales of HKD 210 million. On the news front, Goldman Sachs released a report stating that Shenzhou's mid-term net profit increased by 38% year-on-year to RMB 2.93 billion, 6% higher than the bank's expectations, mainly due to a lower tax rate and a strong recovery in gross profit margin; revenue in the first half of the year only increased by 12% year-on-year, 6% lower than the bank's expectations. Credit Suisse stated that Shenzhou's target revenue for this year may achieve double-digit year-on-year growth or face significant risks. The company's management is expected to lower this year's sales guidance, but at the same time, investors are advised to be cautious, mainly because this is the fourth time the group has failed to meet its revenue forecast, indicating structural risks in demand.

Northbound funds sold Hong Kong ETFs, with Southern Heng Seng Technology (03033) and E Fund (02800) facing net sales of HKD 256 million and HKD 2.224 billion respectively. On the news front, Zhongtai International stated that the Hong Kong stock market still lacks positive upward catalysts, but domestic fiscal policies are gradually strengthening. The issuance of local special bonds in August has accelerated, and it is expected to support more physical work in the fourth quarter, providing a bottom for economic growth. China International Capital Corporation stated that whether it is 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 determinant of the trend of the A-share and Hong Kong stock markets.

In addition, Xiaomi Corporation-W (01810) saw net purchases of HKD 29.30 million. Meanwhile, CNOOC (00883) and Tencent (00700) faced net sales of HKD 423 million and HKD 75.07 million respectively