Beishui Movement | Beishui's net buying volume reached 5.828 billion, domestic funds increase their holdings in Hong Kong stocks ETF on dips, rushing to subscribe to TRACKER FUND with over 6 billion Hong Kong dollars
On September 9th, the Hong Kong stock market saw a net inflow of HKD 5.828 billion, mainly from Beishui funds. TRACKER FUND led with a net inflow of HKD 6.01 billion, while Kuaishou-W and Southern Heng Seng Technology also attracted attention. The net inflows through the Shanghai and Shenzhen Stock Connect were HKD 3.275 billion and HKD 2.553 billion respectively. Galaxy Securities pointed out that the short-term market sentiment is volatile, but the technology sector is worth watching due to expectations of interest rate cuts. Domestic bank stocks also saw increased positions, with Industrial and Commercial Bank of China and China Construction Bank receiving net inflows of HKD 0.247 billion and HKD 0.181 billion respectively
According to the Zhitong Finance and Economics APP, on September 9th, in the Hong Kong stock market, Beishui had a net purchase of HKD 5.828 billion. Among them, the net purchase of Shanghai-Hong Kong Stock Connect was HKD 3.275 billion, and the net purchase of Shenzhen-Hong Kong Stock Connect was HKD 2.553 billion.
The stocks with the highest net purchases by Beishui were TRACKER FUND (02800), Kuaishou-W (01024), and Southern Hang Seng Technology (03033). The stocks with the highest net sales by Beishui were Tencent (00700), Sinopec (00386), and China Mobile (00941).
Active trading stocks in Shanghai-Hong Kong Stock Connect
Active trading stocks in Shenzhen-Hong Kong Stock Connect
Beishui funds seized the opportunity to buy Hong Kong stock ETFs at low prices. TRACKER FUND (02800), Southern Hang Seng Technology (03033), and Hang Seng China Enterprises (02828) received net purchases of HKD 6.01 billion, HKD 633 million, and HKD 623 million respectively. In terms of news, Galaxy Securities believes that in the short term, investors are concerned about the impact of the U.S. economy and the expectation of a rate hike by the Bank of Japan, and external market sentiment disturbances still exist, leading to a more volatile overall Hong Kong stock market. With the timing of the September Fed rate cut opening, attention is focused on the technology sector benefiting from the rate cut expectations. In the medium to long term, the fundamentals of the Hong Kong stock market rely more on the domestic economy, with a focus on positive signals from domestic policies.
Kuaishou-W (01024) received a net purchase of HKD 728 million. In terms of news, TF Securities issued a research report stating that in Q2 24, the company's gross profit margin both quarter-on-quarter and year-on-year improved, mainly due to improvements in the company's revenue structure and a decrease in the proportion of bandwidth costs and server costs. The bank believes that the company's core business revenue growth is steady, cost reduction and efficiency improvement results are significant, and it is recommended to continue monitoring the trend of profit margin improvement.
Beishui increased its holdings in domestic bank stocks, with Industrial and Commercial Bank of China (01398) and China Construction Bank (00939) receiving net purchases of HKD 247 million and HKD 181 million respectively. In terms of news, there is renewed market speculation about a reduction in existing home loan interest rates. Guosen Securities Hong Kong believes that factors such as the downward trend of LPR, adjustments to existing mortgage rates, and relatively rigid deposit costs are affecting the continuous decline in net interest margins of banks, dragging down revenue and net profit growth rates, which is the biggest pressure point for banks at present. China Merchants Securities released a research report stating that it is expected that the impact of adjustments to existing mortgage rates on bank interest margins will be limited There is a differentiation in oil stocks, with CNOOC (00883) and PetroChina (00857) receiving net purchases of HKD 62.08 million and HKD 25.61 million respectively. However, Sinopec (00386) faced a net selling of HKD 295 million. On the news front, on Friday, the US Bureau of Labor Statistics released data showing a growth of 142,000 in non-farm employment in the US in August, below the expected 165,000, with market concerns about economic recession and the outlook for oil demand putting pressure on oil prices. In addition, CICC stated that due to the weaker-than-expected performance of industrial oil consumption, there is a risk of a downward adjustment of 250,000 to 300,000 barrels per day in the annual growth space for domestic oil demand in 2024.
Furthermore, China Mobile (00941) and Tencent (00700) faced net selling of HKD 159 million and HKD 1.152 billion respectively