Beishui Movement | Beishui's net purchase amount is 3.399 billion, domestic funds bought Alibaba again by over 3.8 billion, with a net purchase of nearly 24 billion Hong Kong dollars in two weeks

According to the Zhitong Finance and Economics APP, on September 20th, in the Hong Kong stock market, Beishui had a net purchase of HKD 3.399 billion. Among them, the net purchase of Shanghai-Hong Kong Stock Connect was HKD 0.222 billion, and the net purchase of Shenzhen-Hong Kong Stock Connect was HKD 3.177 billion.

The top stocks with the most net purchases by Beishui were Alibaba-W (09988), Hong Kong Exchanges and Clearing Limited (00388), and Kuaishou-W (01024). The top stocks with the most net sales by Beishui were Tencent (00700), China Construction Bank (00939), and Li Auto-W (02015).

Active trading stocks in Shanghai-Hong Kong Stock Connect

Active trading stocks in Shenzhen-Hong Kong Stock Connect

Alibaba-W (09988) received a net purchase of HKD 3.811 billion. In terms of news, at the 2024 Yunqi Conference, Alibaba Cloud released the new generation open-source model Qwen2.5, covering a full range of large language models, multimodal models, mathematical models, and code models in various sizes, with a total of over 100 models launched. The flagship model Qwen2.5-72B outperforms Llama 405B in performance. It is worth noting that after Alibaba was included in the list of Hong Kong Stock Connect, the cumulative inflow of funds from Beishui has reached nearly HKD 24 billion.

Hong Kong Exchanges and Clearing Limited (00388) received a net purchase of HKD 0.376 billion. In terms of news, Charles Li, the CEO of Hong Kong Exchanges and Clearing Limited, pointed out after the listing ceremony of Meituan in the United States that a wave of large new listings is expected to follow. Hong Kong's fundraising scale has reached USD 20 billion so far this year, with about 100 listing applications currently pending, including applications planning to raise USD 1 billion. In addition, the Federal Reserve announced a 50 basis point rate cut. HSBC stated that the Hong Kong Exchanges and Clearing Limited's revenue, market valuation, fundraising amount, etc., will all benefit from the rate cut cycle.

Kuaishou-W (01024) received a net purchase of HKD 0.288 billion. In terms of news, Macquarie published a research report stating that the short video business is becoming a new growth driver for Kuaishou, with strong user attraction capabilities. It can divert users to its own platform, form a closed loop, bring external growth, and the management believes that short videos have significant commercial potential, anticipating significant growth next year, driving steady growth in revenue and profits. Despite increasing market concerns about live e-commerce, Kuaishou's management still believes that GMV and user traffic can maintain resilience, maintaining the target of 17% year-on-year growth in GMV WuXi Biologics (02269) received a net purchase of HKD 263 million. On the news front, according to media reports, the U.S. Senate released the final version of the NDAA. Analysts pointed out that the previous version of the NDAA in the House of Representatives did not include the biosecurity proposal, and the Senate version also does not include it, indicating that the biosecurity proposal for FY2025 NDAA cannot be passed through this route, leaving only the option of a standalone law. Citigroup previously stated that it is unclear whether the U.S. Senate will adopt the House version of the "Biosecurity Bill" or another version, or attach a larger bill to the "Biosecurity Bill". The bank believes that the stock prices of WuXi AppTec and WuXi Biologics are undervalued.

CStone Pharmaceuticals (01093) received a net purchase of HKD 91.22 million. On the news front, a report by Jefferies stated that CStone Pharmaceuticals announced a plan to repurchase up to HKD 5 billion worth of shares in the next 24 months on top of the current HKD 1 billion share buyback plan. Since the beginning of the year, the company has completed share repurchases totaling HKD 1.0578 billion, accounting for 2.1% of its issued shares. The bank believes that CStone has significantly strengthened its dividend policy since 2023, making it one of the few domestic pharmaceutical companies with a large passive cash return. The bank believes that the company is accelerating measures to enhance shareholder returns through buybacks and dividends.

CNOOC (00883) faced a net selling of HKD 75.33 million. On the news front, the Federal Reserve chose to cut interest rates by a significant 50 basis points at the September rate decision, but also lowered growth expectations for several economic indicators, triggering a return of recessionary trading in overseas markets. Citigroup previously stated that it expects an approximately 400,000 barrels per day seasonal deficit in the oil market in the fourth quarter, which may provide temporary support for oil prices. However, with the global oil supply and demand balance deteriorating in most scenarios by 2025, new price weakness is still expected in 2025, and Brent crude prices are expected to trend towards $60 per barrel.

Li Auto-W (02015) faced a net selling of HKD 145 million. On the news front, TF Securities previously pointed out that concerns about future consumer demand led to an oversold situation after the financial report. In fact, automobile consumption saw a slight recovery trend in July driven by the old-for-new policy, but the continuity of market demand is indeed difficult to judge. However, the company's fundamentals in the 3rd and 4th quarters are expected to gradually improve. In addition, the accelerated introduction of subsidies and preferential policies in various regions is expected to boost overall demand momentum. The bank expects the automobile gross profit margin to further improve, judging that Li Auto is expected to release elasticity in gross profit and net profit in the second half of the year.

China Construction Bank (00939) faced a net selling of HKD 347 million. On the news front, the LPR rates for September were announced, with the 1-year and 5-year rates remaining unchanged. Zhou Maohua, a macro researcher at the Financial Markets Department of Everbright Bank, stated that the pressure on banks' net interest margins is relatively high, and the policy rate (7-day reverse repurchase rate) remains unchanged. The LPR rates were significantly lowered in February and July this year, and commercial banks need some time to assess the specific impact and effects of the LPR rate cuts. Currently, overall pressure on bank net interest margins remains high.

In addition, China Mobile (00941) and Tencent (00700) faced net selling of HKD 52.39 million and HKD 1.046 billion, respectively