Beishui Trends | Beishui's net buying volume reached 2.39 billion, domestic funds continue to increase their holdings in Alibaba, with a total of over 16.4 billion Hong Kong dollars accumulated this week

According to the Zhitong Finance and Economics APP, on September 13th, in the Hong Kong stock market, Beishui had a net purchase of HKD 239 million. Among them, the Shanghai-Hong Kong Stock Connect had a net sell of HKD 622 million, and the Shenzhen-Hong Kong Stock Connect had a net purchase of HKD 861 million.

The stocks with the highest net purchases by Beishui were Alibaba-W (09988), China Mobile (00941), and Industrial and Commercial Bank of China (01398). The stocks with the highest net sales by Beishui were Yingfu Fund (02800), Southbound Heng Seng Technology (03033), and PetroChina (00857).

Active trading stocks in the Shanghai-Hong Kong Stock Connect

Active trading stocks in the Shenzhen-Hong Kong Stock Connect

Alibaba-W (09988) received a net purchase of HKD 1.316 billion, and the cumulative net purchase by Beishui this week has reached HKD 16.42 billion. In terms of news, Alibaba was included in the Hong Kong Stock Connect list. Morgan Stanley estimates that it will attract USD 17 billion to USD 37 billion of southbound funds in the next year, with a shareholding ratio ranging from 8% to 17%. They also pointed out that there are many short-term catalysts for Alibaba's stock price recently. JP Morgan stated that the comprehensive impact of Alibaba's inclusion in the Hong Kong Stock Connect and the inflow of southbound funds will take several months to show, but they believe that based on the basic development of domestic e-commerce, Alibaba will become a key stock price driver in the next 6 to 12 months.

Industrial and Commercial Bank of China (01398) received a net purchase of HKD 135 million. In terms of news, China Merchants Securities released a research report stating that the adjustment of existing mortgage rates has limited impact on bank interest margins. Morgan Stanley pointed out that although the LPR reduction may put pressure on China's banking industry's loan interest income, the interest costs paid to depositors by banks are also decreasing, which helps alleviate the pressure on net interest margins.

There was differentiation in oil stocks, with CNOOC (00883) receiving a net purchase of HKD 130 million, and PetroChina (00857) experiencing a net sell of HKD 197 million. In terms of news, Galaxy Futures stated that in the medium term, OPEC's postponement of production cuts provides some support to the crude oil market. After the low-level volatility in the crude oil market, a rebound is not ruled out, but due to the increased possibility of OPEC exiting production cuts after the rebound, the upside is limited. In the long term, under the pressure of increased production in non-OPEC countries and the slowdown in international crude oil demand growth, especially the possibility of OPEC exiting production cuts, the crude oil market may still decline Zijin Mining (02899) received a net purchase of HKD 70.66 million. On the news front, Goldman Sachs released a report stating that Zijin Mining's management attended an investor conference held by the bank. The company's cost reduction measures have yielded positive results, with the expected total unit production cost of copper concentrate in 2024 at HKD 18,500 per ton, and the unit production cost of mineral copper at HKD 22,400 per ton, representing a 7% and 4% annual decrease, respectively. Zijin's unit production cost of copper concentrate in the first half of this year decreased by 8.8% on a semi-annual basis, mainly from overseas projects. In terms of dividend policy, Zijin has set the minimum payout ratio at 30% and will balance capital expenditures to increase the dividend yield. The bank believes that Zijin Mining is one of the few mining companies that can benefit from production growth and rising commodity prices.

Kangfang Bio (09926) received a net purchase of HKD 50.94 million. According to a research report by Morgan Stanley, Kangfang Bio's self-developed AK112 monoclonal antibody injection (AK112) as a monotherapy in the Phase III clinical trial for treating PD-L1-positive non-small cell lung cancer (NSCLC) patients outperformed pembrolizumab 1L, with a risk ratio of 0.51. The success of the global Phase III trial of this product and increased confidence in gaining more market share in China have led to an upward revision of Kangfang Bio's sales forecast by over 40%.

Hong Kong ETFs were sold off, with Heng Seng China Enterprises (02828), CSOP Hang Seng Tech Index (03033), and Value Partners High-Dividend Stocks (02800) experiencing net sales of HKD 1.5 million, HKD 287 million, and HKD 777 million, respectively. According to Zhongtai International, as market expectations for expanding consumption in the areas of trade-ins for new products, accelerating real estate inventory and affordable housing construction, and potential structural policies such as reducing existing home loans gradually heat up against the backdrop of weak economic recovery in fundamental data, the market is gradually warming up. With Hong Kong stocks currently at extremely low valuations, the marginal policy benefits are expected to bring about a rebound, but sustained upward momentum still requires the continuous improvement of economic fundamentals. Guotai Junan International pointed out that the initiation of an interest rate cut cycle is beneficial for the performance of emerging markets and Hong Kong stocks. Hong Kong stock valuations are still at a low level, and it is expected that funds will gradually flow back.

In addition, China Mobile (00941) received a net purchase of HKD 2.09 billion, while Tencent (00700) and China Shenhua Energy (01088) experienced net sales of HKD 192 million and HKD 26.22 million, respectively