Northbound Funds Update: Northbound funds net bought 1.758 billion, CNOOC received nearly 1 billion additional holdings, while domestic banks and coal companies faced selling pressure from domestic investors.

Zhitong App learned that on February 26th, in the Hong Kong stock market, the net purchase of Beishui amounted to HKD 1.758 billion. Among them, the net purchase through the Shanghai-Hong Kong Stock Connect was HKD 1.644 billion, and the net purchase through the Shenzhen-Hong Kong Stock Connect was HKD 0.114 billion.

The top three stocks with the highest net purchases by Beishui were CNOOC (00883), Li Auto-W (02015), and Meituan-W (03690). The top three stocks with the highest net sales by Beishui were Tencent (00700), GF Fund (02800), and Industrial and Commercial Bank of China (01398).

In the active trading stocks through the Shanghai-Hong Kong Stock Connect:

CNOOC (00883) received a net purchase of HKD 0.981 billion. In terms of news, CNOOC announced that the Bohai 26-6 oil field, with a billion-ton level, achieved a record high in test production capacity for the new drilling well, adding over 40 million cubic meters of newly discovered oil and gas reserves. This means that the cumulative proven reserves of the oil field have exceeded 200 million cubic meters, making it the world's largest metamorphic rock oil field. Guotai Junan Securities pointed out that compared to other high dividend assets in the industry, the undervaluation and high dividend value of the "Big Three Oil Companies" are highlighted.

Li Auto-W (02015) received a net purchase of HKD 0.248 billion. In terms of news, Li Auto released its financial report after the market closed today, showing a revenue of RMB 41.73 billion in the fourth quarter of 2023, compared to RMB 17.65 billion in the same period last year, an increase of 136.4% year-on-year. Li Auto's adjusted net profit attributable to shareholders in the fourth quarter was RMB 4.49 billion. It is expected that the revenue in the first quarter of 2024 will be between RMB 31.25 billion and RMB 32.19 billion, with the market estimating RMB 36.37 billion; the estimated delivery volume in the first quarter is between 100,000 and 103,000 vehicles, with the market estimating 116,604 vehicles, a year-on-year growth of 90.2-95.9%.

SMIC (00981) faced a net sale of HKD 27.96 million. In terms of news, Huaxing Securities released a report stating that SMIC's multi-year expansion plan is still steadily progressing, with a current preference for expanding production in the N22-28 process to avoid competition at the more mature 12-inch/8-inch process nodes, as in these more mature process areas. Other domestic peers also have relevant production capacity and continue to expand. According to SMIC, the capacity expansion of the N22-28 process will be carried out in super large wafer fabs around the world. The bank has downgraded SMIC's rating to "Hold" with a target price lowered from HKD 18 to HKD 14.

Banking stocks were sold off, with Agricultural Bank (01288), China Construction Bank (00939), and Industrial and Commercial Bank of China (01398) experiencing net sales of HKD 40.16 million, HKD 1.33 billion, and HKD 1.49 billion respectively. In terms of news, JPMorgan Chase released a report stating that the 5-year and above Loan Prime Rate (LPR) unexpectedly decreased by 25 basis points, with an average net interest margin of domestic banks expected to decrease by 3 basis points next year. The bank believes that although the unexpected LPR cut is unfavorable to domestic banks, it will not reverse their outstanding performance this year, as the dividend yield is a key driver of their performance. The latest cut in the 5-year LPR should not affect last year's dividends of domestic banks, and the impact on dividends this year is also limited. The bank reiterated its view that domestic banks will continue to outperform the index in the first half of this year.

Beishui Capital sold off coal stocks, with China Shenhua (01088) and Yanzhou Coal Mining (01171) experiencing net sales of HKD 64.57 million and HKD 1.1 billion respectively. In terms of news, Shanxi Province recently issued a notice on carrying out a special rectification of "three excesses" and concealed working faces in coal mines. After the Spring Festival, there were rumors in the market that some coal enterprises in Shanxi had issued production reduction requirements, with Lu'an Group and Shanmei International planning to reduce production by 17 million tons and 8 million tons respectively. According to China New Economic Net, the company's securities department stated that the rumor of "Shanmei International reducing production by 8 million tons" is "not true"; Lu'an Group has not responded to the production reduction rumors.

In addition, Meituan-W (03690) received a net purchase of HKD 1.04 billion. Meanwhile, China Mobile (00941), E Fund Management (02800), and Tencent (00700) experienced net sales of HKD 3.4 million, HKD 2.47 billion, and HKD 2.61 billion respectively.