Beishui Trends | Beishui's net buying volume reached 12.17 billion, domestic funds aggressively increased holdings in Alibaba by over 1.5 billion, and sold nearly 800 million Hong Kong dollars worth of Tencent

According to the Zhitong Finance and Economics APP, on October 14th, in the Hong Kong stock market, Beishui had a net purchase of HKD 12.17 billion. Among them, the net purchase of Shanghai-Hong Kong Stock Connect was HKD 7.553 billion, and the net purchase of Shenzhen-Hong Kong Stock Connect was HKD 4.617 billion.

The stocks with the highest net purchases by Beishui were Alibaba-W (09988), China Construction Bank (00939), and Anta Sports (02020). The stocks with the highest net sales by Beishui were Tencent (00700) and CNOOC (00883).

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 1.545 billion. On the news front, CMB International stated that in the second quarter of the 2025 fiscal year, Taotian Group's monetization capability improvement speed may exceed the bank's expectations; benefiting from better-than-expected merchant acceptance across the platform, and with the further increase in merchant penetration rate and potential improvement in consumer sentiment in the future, the speed of monetization capability improvement may be faster. The development of international business, the recovery of cloud business, and the potential reduction in losses of non-core businesses are all expected to meet expectations. Stable and predictable shareholder return measures and the incremental capital inflow from southbound investors after inclusion in the Hong Kong Stock Connect are expected to provide support for valuation.

China Construction Bank (00939) received a net purchase of HKD 693 million. On the news front, CITIC Securities pointed out that the intensification of countercyclical adjustments in fiscal policy, the alleviation of credit risks in two important sectors of the banking system (city investment and real estate sectors), will help improve the stability of bank net assets and have a positive effect on bank stock valuations. Although the dilution impact of state-owned bank capital replenishment is controllable, in the long term, it is expected to solidify the sustainable development capability of state-owned major banks.

Anta Sports (02020) received a net purchase of HKD 477 million. On the news front, UBS believes that although the FILA brand is below market expectations, they believe in the management's positive attitude towards profitability, coupled with discounts and National Day sales, which help alleviate the weakness in the third quarter. The management pointed out that the sales of Anta and FILA brands during the National Day holiday exceeded expectations and did not offer larger discounts. UBS stated that although Anta's third-quarter sales only reached 90% of management's expectations, if the fourth quarter performance meets expectations, the management is confident in achieving the annual profit target China Resources Semiconductor (00981) received a net purchase of HKD 426 million. On the news front, on the evening of October 11th, China Resources Semiconductor announced that E Fund SZSE ChiNext 50 ETF increased its holdings of the company's domestic shares by 9.6162 million shares, with an increase ratio of 0.48%. After this increase, E Fund SZSE ChiNext 50 ETF holds approximately 108.7 million shares of China Resources Semiconductor's domestic shares, accounting for 5.47% of the company's domestic total share capital and 1.36% of the total share capital.

China Mobile (00941) received a net purchase of HKD 285 million. According to Guotai Junan Securities, telecom operators remain the most valuable investment sector in the communications industry. With the completion of 5G construction and limited overall pressure on CAPEX from computing power investments, the inflection point of CAPEX in 2024 has emerged. Continuous improvement in free cash flow, coupled with reduced depreciation and amortization, is expected to gradually show long-term effects on the profit side, with a trend towards increased cash dividends for operators.

Sunac China (01918) received a net purchase of HKD 160 million. On the news front, Deputy Minister of Finance Liao Min stated at a press conference on the 12th that favorable policy measures conducive to the stable development of the real estate sector will be actively studied and introduced. Yan Yuejin, Deputy Director of the Shanghai E-House Real Estate Research Institute, stated that the mention of tax tools to support the stabilization of the real estate market implies that a major tax reduction policy will likely emerge under the backdrop of a series of significant policies by the central bank. In other words, close attention should be paid to the policy direction of the tax authorities in October this year.

China Everbright (01359) received a net purchase of HKD 145 million. Minister of Finance Liu Fuan stated at a press conference held by the State Council Information Office that there are plans to significantly increase the debt ceiling at one time, replacing local government existing hidden debts, and intensifying support to help local governments resolve debt risks. Guojin Securities pointed out that financialization of debt has become an important means to resolve local government debt. AMC companies will benefit the most directly, with increased disposal of non-performing assets boosting income on one hand, and the quality of assets improving as the economy recovers on the other. Local AMCs have already begun actively participating in debt conversion.

CNOOC (00883) faced a net sell-off of HKD 445 million. Morgan Stanley previously released a research report stating that oil prices fell by about $7 per barrel in the third quarter, and refinery profits are expected to decrease due to inventory losses. Additionally, with the decrease in the cost of imported natural gas, wholesale natural gas profits may increase quarterly. It is currently forecasted that both PetroChina and CNOOC may see a quarterly profit decline of 10% to 13% in the third quarter, while Sinopec may record an even larger profit decline due to inventory losses.

Tencent (00700) faced a net sell-off of HKD 774 million. Huatai Securities published a report forecasting a 9.3% year-on-year increase in Tencent's third-quarter revenue. In the short term, third-quarter advertising growth slowed to 16% year-on-year due to macroeconomic factors, with a slight decline in revenue from the "Dungeon & Fighter" mobile game in September. Citigroup predicts that Tencent will announce its third-quarter performance in mid-November, which is expected to meet the bank's and market expectations. Game revenue may increase, but could be offset by weakness in financial technology, enterprise services, and online advertising revenue