Beishui Trend | Beishui's net buying reached 5.861 billion, domestic funds increased positions in domestic banks and chip stocks throughout the day, seizing the opportunity to buy Zijin Mining on dips

According to the VZFINANCE APP, on June 18th, in the Hong Kong stock market, Beishui had a net purchase of HKD 5.861 billion, with a net purchase of HKD 2.533 billion through the Shanghai-Hong Kong Stock Connect and HKD 3.328 billion through the Shenzhen-Hong Kong Stock Connect.

The top three stocks with the most net purchases by Beishui were China Construction Bank (00939), Zijin Mining (02899), and CHINA MOBILE (00941). The stock with the most net sales by Beishui was Tencent (00700).

Active trading stocks through the Shanghai-Hong Kong Stock Connect

Active trading stocks through the Shenzhen-Hong Kong Stock Connect

Beishui continued to increase its positions in domestic bank stocks. China Construction Bank (00939), Bank of China (03988), and Industrial and Commercial Bank of China (01398) received net purchases of HKD 549 million, HKD 490 million, and HKD 228 million respectively. In terms of news, Goldman Sachs expects the central bank to reduce the reserve requirement ratio by 25 basis points in the third quarter and cut interest rates by 10 basis points in the fourth quarter. CITIC Securities stated that looking ahead, optimizing the matching of finance with the real economy will actually enhance the stability of the financial system and make financial support for the real economy more sustainable. We believe that the previous multi-party policy efforts will help improve bank risk expectations, and the valuation of bank stocks will be further supported by fundamentals, solidifying the certainty of dividend income.

Zijin Mining (02899) received a net purchase of HKD 539 million. In terms of news, Zijin Mining announced plans to issue up to USD 2 billion in bonds, with a discount of approximately 5.02%, raising a net amount of approximately HKD 3.871 billion through the highest net fundraising. It is reported that in mid-May, the company released a "Five-Year Development Plan," planning to achieve an increase of about 50% in copper and gold production by 2028 based on 2023, with copper exceeding 1.5 million tons, gold exceeding 100 tons, and lithium carbonate equivalent exceeding 250,000 tons, leading the global metal mining industry in production growth indicators China Mobile (00941) received a net buy of HKD 517 million. On the news front, Goldman Sachs released a report stating that the outlook for the second half of the year remains positive for the three major Chinese telecommunications stocks: China Mobile, China Telecom, and China Unicom. They believe that these stocks are suitable for long-term value assessment using a dividend discount model, based on clear dividend rate targets, a stable business and profit growth combination. The forecasted free cash flow from this year to 2026 is expected to exceed the dividend target given by pure profit, demonstrating the company's ability to achieve dividend goals, as well as the willingness of state-owned enterprises to drive shareholder returns and manage market value.

CNOOC (00883) received a net buy of HKD 266 million. On the news front, Changjiang Securities pointed out that looking ahead, the oil price center is expected to operate at a medium to high level. As China's largest offshore oil and gas producer, CNOOC will fully benefit from high oil prices and its own growth realization. Compared with Western oil companies represented by ExxonMobil, CNOOC's current valuation is relatively low. With the gradual manifestation of CNOOC's profit advantage, there is still great potential for the company's valuation to increase.

Beishui Capital increased its holdings in chip stocks, with Huahong Semiconductor (01347) and SMIC (00981) receiving net buys of HKD 130 million and HKD 92.72 million respectively. According to media reports, TSMC may initiate new price increase negotiations in the second half of the year, mainly targeting 5nm, 3nm, and future 2nm processes. The decision to raise prices is expected to take effect as early as 2025. There are also reports indicating that TSMC's 3nm foundry pricing may increase by more than 5%, and advanced packaging annual pricing increases may range from 10% to 20%. Morgan Stanley recently stated that Huahong Semiconductor's wafer fab is currently operating at over 100% capacity, and wafer prices may be raised by 10% in the second half of this year.

In addition, Kingsoft Financial International (01468) received a net buy of HKD 7.48 million, while Tencent (00700) faced a net sell of HKD 275 million