Northbound Capital Trends | Northbound capital net purchases of HKD 5.271 billion, with Northbound capital aggressively buying tech stocks, net purchasing nearly HKD 1.7 billion in Alibaba throughout the day

According to Zhitong Finance APP, on November 27th, in the Hong Kong stock market, northbound funds had a net purchase of HKD 5.271 billion, with the Shanghai-Hong Kong Stock Connect having a net purchase of HKD 1.914 billion and the Shenzhen-Hong Kong Stock Connect having a net purchase of HKD 3.357 billion.

The stocks with the highest net purchases from northbound funds were Alibaba-W (09988), Meituan-W (03690), and Tencent (00700). The stocks with the highest net sales were the Tracker Fund of Hong Kong (02800), XPeng-W (09868), and Semiconductor Manufacturing International Corporation (00981).

Active stocks in the Shanghai-Hong Kong Stock Connect

Active stocks in the Shenzhen-Hong Kong Stock Connect

Northbound funds aggressively bought technology stocks, with Alibaba-W (09988), Meituan-W (03690), and Tencent (00700) receiving net purchases of HKD 1.686 billion, HKD 0.954 billion, and HKD 0.718 billion, respectively. In terms of news, Guotai Junan released a research report stating that southbound funds continue to maintain net inflows, with the net inflow scale in November reaching a historical high for the past three years. The Hang Seng Tech Index's forward 12-month earnings forecast continues to rise, and expectations on the real molecule end are gradually stabilizing. Currently, Hong Kong stocks have a high cost-performance ratio, and considering the subsequent improvement in overseas liquidity combined with domestic policy intensification, there is still room for the Hong Kong stock market. According to Shanghai Securities News, Franklin Templeton previously pointed out that the current pullback in Hong Kong stocks may have been sufficient, and valuations have returned to a high cost-performance position.

Ping An Insurance (02318) received a net purchase of HKD 0.273 billion. In terms of news, GF Securities pointed out that the industry has released regulations on property and life insurance claims, which will help further enhance residents' perception of insurance, benefiting long-term growth. At the same time, the gradual introduction of growth-stabilizing policies is conducive to the continued warming of long-term interest rates and the equity market, benefiting the maintenance of high profit growth throughout the year. Coupled with the value growth brought by the improvement in interest spreads, insurance stock valuations are expected to continue to rise, and it is recommended to actively pay attention to the insurance sector.

Suteng Juchuang (02498) received a net purchase of HKD 0.199 billion. In terms of news, stimulated by positive performance, overnight U.S. stocks of Hesai Technology surged over 44%. It is reported that Suteng Juchuang will release its third-quarter performance on November 29th. In the third quarter, Suteng Juchuang's total sales of laser radars were approximately 138,600 units, a year-on-year increase of 134.9%, of which the sales of vehicle-mounted laser radars were approximately 131,400 units, a year-on-year increase of 147.0% Soochow Securities previously indicated that with the continued improvement in the cost-performance ratio of the company's products, coupled with the ongoing increase in the penetration rate of onboard lidar, the company's shipment volume is expected to maintain high growth, with scale effects gradually emerging and profitability likely to achieve rapid enhancement.

Automobile Street (02443) plummeted 44% today, with Northbound funds buying on dips, resulting in a net purchase of HKD 189 million throughout the day. On the news front, Automobile Street was listed on May 31, and today marks the end of the lock-up period, with 550 million shares being unlocked, accounting for 66.1% of the total share capital. It is noteworthy that the Hong Kong Stock Exchange recently announced the list of securities eligible for short selling adjustments, which will take effect on November 8; a total of 35 stocks have been included in the short-selling targets, including Automobile Street.

CNOOC (00883) received a net purchase of HKD 73.9 million. On the news front, it was reported that major OPEC+ countries have begun discussions to postpone the planned resumption of crude oil production originally set to start in January, which may be delayed by several months. Representatives who requested anonymity due to the confidential nature of the discussions indicated that in light of signs of global oversupply, these countries are skeptical about continuing with the plan to increase production in January and may need to delay plans for further increases in the coming months.

The Tracker Fund of Hong Kong (02800) faced a net sell-off of HKD 1.037 billion. On the news front, China International Capital Corporation previously pointed out that in the short term, external pressures and geopolitical disturbances seem to be the main reasons for the market's "sudden" decline. However, it is essentially due to the market itself being in a certain "weak equilibrium" between expectations and policy fulfillment. Zhongtai International noted that the policy bottom needs to be solidified again, and external uncertainties such as potential high tariffs and escalating geopolitical conflicts are important logics currently "forcing" policies to be introduced earlier and with greater intensity.

In addition, China Mobile (00941) received a net purchase of HKD 49.03 million. Meanwhile, XPeng-W (09868) and SMIC (00981) faced net sell-offs of HKD 18.57 million and HKD 700,000, respectively