Northbound Funds | Northbound Funds net bought 1.367 billion, Tencent regained additional holdings, while domestic bank stocks continued to be sold off

According to the Zhitong Finance and Economics APP, on August 30th, in the Hong Kong stock market, Beishui had a net purchase of HKD 1.367 billion. Among them, the Shanghai-Hong Kong Stock Connect had a net purchase of HKD 1.429 billion, while the Shenzhen-Hong Kong Stock Connect had a net sell of HKD 0.061 billion.

The top stocks with the most net purchases by Beishui were Tencent (00700), Ping An of China (02318), and Xiaomi Corporation-W (01810). The top stocks with the most net sells by Beishui were Industrial and Commercial Bank of China (01398), China Construction Bank (00939), and Li Auto-W (02015).

Active trading stocks in the Shanghai-Hong Kong Stock Connect

Active trading stocks in the Shenzhen-Hong Kong Stock Connect

Tencent (00700) had a net purchase of HKD 0.681 billion. In terms of news, Huatai Securities stated that it is expected that the annual sales volume of "Black Myth: Wukong" will reach 30 to 40 million copies (corresponding to revenue of RMB 10 to 14 billion), and the expected price of the next year's expansion pack will be higher than RMB 100 (corresponding to revenue of RMB 1 to 3 billion). The bank stated that "Black Myth: Wukong" will inject new vitality into the PC game market, drive more manufacturers to start new projects in the future, and enhance confidence in investing in AAA games (Tencent holds a 5% stake in the developer of "Black Myth: Wukong"). In addition, Huaxin Securities released a research report stating that Tencent's total revenue growth rate for domestic and international games in the second quarter exceeded the income growth rate.

Ping An of China (02318) had a net purchase of HKD 0.389 billion. In terms of news, CICC released a research report stating that Ping An's performance in the first half of the year met the bank's expectations. The bank believes that the trend of improvement in the life insurance business is obvious, and considering the trends of various indicators of Ping An Life Insurance, the bank is optimistic about the company's future business trends. Considering the improvement trend and operational advantages of Ping An Insurance's main business, the low base caused by past asset management business impairments, and the possible level of future impairments, the bank believes that Ping An Group's profit turning point may have appeared, enhancing the certainty of future steady dividend growth.

BYD Company Limited (01211) had a net purchase of HKD 28.42 million. In terms of news, Fuli expressed that with the better economies of scale of DM5.0 starting to take effect, coupled with the strong order momentum brought by the upgraded trade-in policy, the bank expects the net profit per vehicle to increase, believing that the company can achieve its target of selling 2.2 million vehicles in the second half of the year CICC stated that entering the second half of the year, the further launch of new car models and the release of DM5.0 production capacity may drive September sales to exceed 400,000 units. It is also expected that the profit per car will improve from RMB 8,500 in the second quarter.

CNOOC (00883) faced a net selling of HKD 191 million. In terms of news, CNOOC announced its interim results with revenue of RMB 226.77 billion, up 18.1% year-on-year; net profit of RMB 79.731 billion, up 25% year-on-year. It declared an interim dividend of 74 HK cents, setting a new high for the same period in history, compared to 59 HK cents in the same period last year. CNOOC's Vice Chairman, CEO, and President Zhou Xinhua stated at the interim results conference that international oil prices remained favorable in the first half of the year, and it is expected that international oil prices will fluctuate between $75 and $85 per barrel in the second half of the year.

Li Auto-W (02015) faced a net selling of HKD 203 million. In terms of news, CMB Securities stated that the improvement of Li Auto in the third quarter is highly certain. The L6 model delivered over 20,000 vehicles for two consecutive months from June to July. The surge in L6 sales will drive a significant increase in third-quarter total sales volume, with enhanced economies of scale improving gross profit margins. Additionally, cost reduction measures such as layoffs in the second quarter have significantly reduced the expense ratio compared to the previous month. If the effects continue in the second half of the year, the expense ratio in the third quarter will continue to decline, improving profitability. However, uncertainties remain in the fourth quarter as the company lacks major new products, and if competitors aggressively expand, the company may be forced to lower prices to defend its market share.

Beishui Capital sold off domestic bank stocks, with Industrial and Commercial Bank of China (01398) and China Construction Bank (00939) facing net selling of HKD 478 million and HKD 419 million, respectively. In terms of news, according to Securities Times, there are rumors in the market today that relevant parties are considering further lowering the interest rates on existing home loans, allowing up to RMB 38 trillion in existing home loans to seek mortgage refinancing to reduce household debt burdens and boost consumption. As of the time of writing, the above rumors have not been officially confirmed. According to Securities Times reporters, as this matter has a significant impact on banks, there may be resistance to its implementation.

In addition, Xiaomi Corporation-W (01810) saw a net buying of HKD 205 million, while China Mobile (00941) faced a net selling of HKD 55.65 million