Northbound Funds | Northbound net buying of RMB 474 million, Meituan receives additional holdings, XPeng sold off after a sharp rise

According to the VESYNC Financial APP, on July 11th, in the Hong Kong stock market, Beishui had a net purchase of HKD 474 million. Among them, the net purchase of Hong Kong Stock Connect (Shanghai) was HKD 960 million, and the net sale of Hong Kong Stock Connect (Shenzhen) was HKD 486 million.

The stocks with the highest net purchases by Beishui were Meituan-W (03690), China Mobile (00941), and Xiaomi Corporation-W (01810). The stocks with the highest net sales by Beishui were Tencent (00700), XPENG-W (09868), and CNOOC (00883).

Active trading stocks in Hong Kong Stock Connect (Shanghai)

Active trading stocks in Hong Kong Stock Connect (Shenzhen)

Meituan-W (03690) had a net purchase of HKD 296 million. On the news front, there were market reports today that Meituan is planning to enter the elevator advertising market. In response to this, multiple calls were made to Focus Media, but there was no answer. It was learned that on the morning of the 11th, Meituan stated that the company plans to recruit elevator media advertising franchisees in lower-tier cities (video ladder media). Meituan will provide equipment and business support on its side, while franchisees will be responsible for equipment installation, sales, and advertising production.

China Mobile (00941) and China Telecom (00728) had net purchases of HKD 144 million and HKD 59.6 million, respectively. On the news front, Zheshang Securities pointed out that the overall business of telecom operators is growing steadily, with innovative businesses showing higher growth rates and increasing proportions, new momentum continuing to grow, and capital expenditure as a percentage of revenue decreasing, which is conducive to profit release. CITIC Securities also pointed out that looking ahead to 2024 Q2, operators and high-quality central enterprises are expected to continue their steady growth.

Kuaishou-W (01024) had a net purchase of HKD 75.44 million. On the news front, Kuaishou announced a HKD 6 billion share buyback plan. This buyback plan is part of the company's previously announced HKD 16 billion three-year buyback plan. In addition, Citi stated that it sees Kuaishou's unique position in lower-tier cities, resilient user average spending time support, decent growth in e-commerce GMV, and improving e-commerce advertising revenue, especially from brand budget advertising revenue with insufficient penetration rates Chinese banks showed some differentiation, with China Construction Bank (00939) receiving a net buy of HKD 72.55 million, while Industrial and Commercial Bank of China (01398) faced a net sell of HKD 33.99 million. On the news front, JP Morgan released a research report stating that the recent policy focus is on stabilizing bank profit margins. The bank mentioned that if banks normalize corporate demand deposit rates to pre-epidemic levels, the upward adjustment in net interest margin would be around 12 basis points, enough to offset the negative impact of LPR cuts and the shift to time deposits. This helps to sustain a stable net interest margin, thereby driving the bank's positive view on Chinese banks.

SMIC (00981) received a net buy of HKD 54.26 million. On the news front, TSMC plans to raise prices. The price increase for 3nm foundry services may be above 5%, and advanced packaging annual prices are also expected to rise by around 10%-20%. According to the supply chain survey, most of TSMC's clients have agreed to raise foundry prices in exchange for reliable supply. Currently, there is increasing news of price hikes in the semiconductor industry chain, including Qualcomm, TSMC, SMIC, covering IC design, chip foundry, and other sectors.

China Resources Beer (00291) faced a net sell of HKD 126 million. On the news front, Founder Securities pointed out that due to a high base, weak performance in the catering sector, and the impact of rainy weather, we expect pressure on beer industry sales volume in Q2. The trend of structural upgrades continues, cost-side improvements are certain, and overall profitability remains robust. The bank believes that starting from Q3, the entire sector will enter a low base period, coupled with demand catalysts such as sports events and music festivals. It is recommended to pay attention to the industry's performance during the peak season.

XPeng-W (09868) closed up more than 11% today, with some northbound funds selling on highs, resulting in a net sell of HKD 2.61 billion for the whole day. On the news front, XPeng announced that since the official launch of the X9 on January 1st, it has ranked first in the high-end pure electric MPV sales monthly list for six consecutive months, with cumulative sales of 13,143 units in the first half year. In addition, the new model MONA M03 recently had its global debut and is expected to be officially released in August.

Tencent (00700) faced a net sell of HKD 5.29 billion. According to media reports, Tencent announced adjustments to its employee compensation and benefits policy, canceling year-end double pay and housing subsidies, and instead distributing them evenly into monthly salaries to enhance employees' monthly cash flow. This adjustment took effect in early July. Tencent responded that this move is in response to employees' concerns about stable cash flow and worries about income fluctuations after the end of housing subsidies.

In addition, Xiaomi Group-W (01810) and China Shenhua (01088) received net buys of HKD 129 million and HKD 32.59 million respectively. While CNOOC (00883) and China Resources Power (00836) faced net sells