Beishui Movement | Beishui's net buying volume reached 12.143 billion, domestic funds increased their holdings in Alibaba by over 4.9 billion, and aggressively acquired over 1.7 billion Hong Kong dollars worth of shares in HKEX

According to the Wisdom Financial APP, on September 30th, in the Hong Kong stock market, Beishui (Northbound funds) had a net purchase of HKD 12.143 billion, with a net purchase of HKD 7.716 billion through the Shanghai-Hong Kong Stock Connect and a net sell of HKD 4.427 billion through the Shenzhen-Hong Kong Stock Connect.

The top stocks with the most net purchases by Beishui are Alibaba-W (09988), Hong Kong Exchanges and Clearing Limited (00388), and Ping An Insurance (02318). The top stocks with the most net sells by Beishui are China Mobile (00941), Tencent (00700), and CNOOC (00883).

Active trading stocks through the Shanghai-Hong Kong Stock Connect:

Active trading stocks through the Shenzhen-Hong Kong Stock Connect:

Alibaba-W (09988) had a net purchase of HKD 4.913 billion. In terms of news, Citigroup released a research report stating that the central government has introduced a series of monetary and fiscal support measures, which are believed to help improve wealth effects, boost consumer sentiment, and it is expected that Alibaba will strengthen investment and market promotion during the Double 11 period, thereby increasing the GMV of its e-commerce platform. It is predicted that Alibaba's CMR growth in the coming quarters will gradually align with GMV growth. The bank maintains its forecast for Alibaba unchanged, optimistic that the mainland's "combination of punches" will indeed help boost consumer sentiment, raising Alibaba's target price from HKD 115 to HKD 135, and maintaining a "buy" rating.

Hong Kong Exchanges and Clearing Limited (00388) had a net purchase of HKD 1.705 billion. In terms of news, Goldman Sachs released a research report stating that the stock market rebound may continue, raising the earnings per share forecast for Hong Kong Exchanges and Clearing Limited for the fiscal years 2024-2026 by 3%, and raising the target price by 3.9% from HKD 306 to HKD 318. The stock is mainly driven by the trading volume of the Hong Kong stock market, contributing approximately 40% of its revenue. Improvements in mainland stock market sentiment, declining real interest rates, and a rebound in IPO activities may further improve profitability. The bank emphasizes that the risk-return of Hong Kong Exchanges and Clearing Limited remains attractive, with a "conviction buy" rating China Ping An (02318) received a net buy of HKD 1.062 billion. On the news front, the central bank recently introduced a series of stimulus measures to boost the economy, including a 0.5 percentage point reduction in the reserve requirement ratio, releasing RMB 1 trillion in liquidity; and setting up RMB 500 billion in swap facilities for securities firms, fund companies, and insurance companies. A report from Lyon pointed out that companies with stock prices significantly lower than their book value should strengthen their value, and heavyweight index stocks should establish systematic rules to enhance shareholder value, which could particularly benefit Ping An and Taikang. Supportive real estate policies should also improve investor sentiment, especially benefiting Ping An.

SMIC (00981) received a net buy of HKD 467 million. On the news front, Micron Technology recently announced better-than-expected fourth-quarter financial results. The report showed that Micron's fourth-quarter revenue increased by 93% year-on-year to USD 7.75 billion, surpassing the market's expectation of USD 7.66 billion. Looking ahead, Micron forecasts first-quarter revenue for the 2025 fiscal year to reach around USD 8.7 billion, comfortably exceeding the market's expectation of USD 8.32 billion. Dongguan Securities stated that looking at Q4, with the peak season for the industry and the continuous expansion of domestic wafer fab capacity, the semiconductor industry's outlook is expected to continue to improve.

WuXi Biologics (02269) received a net buy of HKD 231 million. On the news front, CICC believes that the U.S. Biosecurity Act was not included in the NDAA, indicating a further delay in the legislation of the Biosecurity Act, reducing the possibility of standalone legislation within the year. At the same time, the latest version of Bill S.3558 did not include WuXi Biologics. According to the U.S. legislative process, the bank believes that other mentioned companies also have the possibility of being excluded. Considering the Fed's official start of rate cuts and marginal improvement in industry orders, it is expected that the investment sentiment of top CXOs will gradually improve.

Sunac China (01918) received a net buy of HKD 5.0639 million. On the news front, on September 29, Shanghai, Guangzhou, and Shenzhen successively introduced new real estate policies. The main points of the Shanghai policy include: adjusting housing purchase restrictions, optimizing housing credit policies, and adjusting housing tax policies; Guangzhou has completely lifted various housing purchase restrictions for resident families; and the main points of the Shenzhen policy include: optimizing zoning housing purchase restrictions, lifting restrictions on the transfer of commercial housing and serviced apartments, adjusting the exemption period for personal housing transfer value-added tax, and optimizing personal housing loan policies.

CNOOC (00883) received a net sell of HKD 576 million. On the news front, it was reported that Saudi Arabia is preparing to abandon the unofficial oil price target of USD 100 per barrel and is preparing to increase production to regain market share. In addition, two OPEC+ sources stated that the organization will increase oil production in December, as if some member countries increase production significantly in September and the following months to make up for overproduction, the impact of the production increase will be minimal.

In addition, Xiaomi Corporation-W (01810) received a net buy of HKD 220 million. While China Mobile (00941) and Tencent (00700) saw net sells of HKD 969 million and HKD 893 million, respectively