Northbound Capital Trends | Northbound capital net purchases amounted to 14.306 billion, domestic investors re-accumulated Hong Kong stock ETFs, with over 1.7 billion in Alibaba

According to Zhitong Finance APP, on December 13th, in the Hong Kong stock market, northbound capital had a net purchase of HKD 14.306 billion, of which the Shanghai-Hong Kong Stock Connect had a net purchase of HKD 9.36 billion, and the Shenzhen-Hong Kong Stock Connect had a net purchase of HKD 4.946 billion.

The stocks with the highest net purchases from northbound capital were Tracker Fund of Hong Kong (02800), Alibaba-W (09988), and Hang Seng China Enterprises (02828). The stocks with the highest net sales were CNOOC (00883) and SMIC (00981).

Active stocks in the Shanghai-Hong Kong Stock Connect

Active stocks in the Shenzhen-Hong Kong Stock Connect

Northbound capital has reallocated to Hong Kong stock ETFs, with Tracker Fund of Hong Kong (02800) and Hang Seng China Enterprises (02828) receiving net purchases of HKD 3.026 billion and HKD 1.206 billion, respectively. On the news front, Guotai Junan International pointed out that important meetings are driving the market's "N" shaped trend, and the policy expectation game may be nearing a temporary end, with a new round of expectation games likely to heat up in March next year. The positive adjustment of macro policies is conducive to improving profit expectations for Hong Kong stocks and enhancing market risk appetite. The gradual decline in overseas interest rates remains the main theme, and the pressure on the denominator will continue to ease.

Alibaba-W (09988) and Tencent (00700) received net purchases of HKD 1.71 billion and HKD 228 million, respectively. On the news front, CMB International released a 2025 outlook for the internet industry, stating that the introduction of substantial consumption-promoting policies may still be a key driving factor for structural valuation increases in the sector, while before that, the sector may maintain fluctuations, with shareholder return levels, profit growth, and certainty being key supports for valuation. CITIC Securities pointed out that the internet sector's valuation has already reflected current conservative expectations, and strong shareholder returns provide sufficient safety margins, while the sector's performance is expected to benefit significantly from macro improvements, leading to a double boost in performance and valuation.

China Construction Bank (00939) received a net purchase of HKD 760 million. On the news front, Bank of China International published a report indicating that considering the decision-makers may continue to introduce more monetary and fiscal policies, the banking sector's fundamentals will remain robust, and it believes that the H-share bank index may continue to achieve positive returns. The report noted that as risk-free interest rates decline and geopolitical risks increase, investors will pay more attention to undervalued H-share bank stocks with high dividend yields In addition, the Ministry of Finance stated that it will issue special government bonds to supplement the capital of large commercial banks.

Jingtaikeji-P (02228) received a net purchase of HKD 591 million. In terms of news, on November 22, the 2024 IDEA Conference hosted by the Guangdong-Hong Kong-Macao Greater Bay Area Digital Economy Research Institute concluded in Shenzhen. Academician Shen Xiangyang introduced a series of cutting-edge research and industrial landing achievements based on AI technology at the conference, including the official launch of the multimodal large model PatSight for chemical literature in collaboration with Jingtaikeji. In addition, Jingtaikeji recently established comprehensive cooperation with the Charoen Pokphand Group in the field of AI development.

COSCO Shipping Holdings (01919) received a net purchase of HKD 374 million. In terms of news, China Merchants Securities pointed out that in terms of freight rates, in the first half of 2025, based on the assumption of rush shipments and continued detours in the Red Sea, freight rates still have short-term upward elasticity; however, if the Red Sea is navigated during the third quarter of 2025, it is expected that the freight rate center will fall back to a reasonable level. In the medium to long term, the delivery pressure of small and medium-sized vessels is relatively small, and the economic situation in the Asia-Pacific region and emerging international markets may be better than that of the main routes.

CNOOC (00883) experienced a net sell of HKD 56.13 million. In terms of news, the International Energy Agency (IEA) released its monthly report stating that despite OPEC+'s decision to delay production increases, the global oil market will still face an oversupply situation next year. In addition, OPEC has lowered its 2024 consumption growth forecast by 210,000 barrels per day to 1.6 million barrels per day. Since July, OPEC has reduced its forecast by 27%. Analysts believe that OPEC's forecast is still higher than the market's general expectations and there is a gap with this year's actual consumption data.

In addition, China Mobile (00941) and Sunac China (01918) received net purchases of HKD 205 million and HKD 41.27 million, respectively. Meanwhile, SMIC (00981) experienced a net sell of HKD 24.05 million