October twelfth$TENCENT (00700.HK)$It fell 0.39 per cent to HK $253.6, with Tencent falling below HK $250,000, the lowest level since November 2018.

It is worth noting thatSince August this year, southbound funds have accumulated a net purchase of 15.982 billion Hong Kong dollars (14.6 billion yuan) from Tencent, which has been net buying for 27 consecutive trading days since August 25.Tencent has made a total of 37 buybacks since August, buying back a total of 45.23 million shares at a cost of 13.268 billion Hong Kong dollars (12.1 billion yuan).

The Chinese reporter of the brokerage noted that from the point of view of the whole market, although the trend of southward net buying of funds slowed down compared with the previous two years, southbound funds continued to buy net during the year. As of October 12, southbound funds had accumulated a net purchase of HK $257.594 billion during the year.

Southward Capital bought a net HK $257.594 billion during the year.

On October 12, southbound funds bought a net HK $1.136 billion, of which Hong Kong Stock Connect (Shanghai) bought HK $983 million and Hong Kong Stock Connect (Shenzhen) bought HK $153 million.

Among them, those who bought more funds from the south were Tencent,$Li Auto-W (02015.HK)$、$CHINA MOBILE (00941.HK)$Received a net purchase of HK $890 million, HK $443 million and HK $371 million respectively$Hang Seng H-Share Index ETF (02828.HK)$、$CNOOC (00883.HK)$、$GCL TECH (03800.HK)$The net sales were HK $1.24 billion, HK $263 million and HK $117 million respectively.

Wind data show that since the beginning of this year, the net purchase of southbound capital has declined compared with 2020 (HK $672.125 billion) and 2021 (HK $454.396 billion), but still maintains a net buying trend. As of October 12, southbound funds had accumulated a net purchase of HK $257.594 billion during the year.

Northbound Capital has increased its holdings in Jiangsu Bank, Daqin Railway and China Telecom Corporation since September.

In terms of northbound funds, northbound funds sold a substantial net sale of 5.876 billion yuan on October 12. Among the top ten actively traded stocks$Kweichow Moutai (600519.SH)$、$Wuliangye Yibin (000858.SZ)$、$Tianqi Lithium Corporation (002466.SZ)$It was sold for 1.597 billion yuan, 561 million yuan and 312 million yuan respectively. And$Contemporary Amperex Technology (300750.SZ)$The net purchase ranked first, with an amount of 305 million yuan.

It is reported that Beixiang Capital has sold Maotai for the second day in a row, totaling 2.951 billion yuan, and Wuliangye for two consecutive days, totaling 1.004 billion yuan.

According to Wind data, the largest number of shares held by northbound funds since September 1 are$Bank Of Jiangsu (600919.SH)$、$Daqin Railway (601006.SH)$、$China Telecom Corporation (601728.SH)$、$The People's Insurance (601319.SH)$、$Zijin Mining Group (601899.SH)$The largest number of reduced stocks are$Boe Technology Group (000725.SZ)$、$China Merchants Bank (600036.SH)$、$China Petroleum & Chemical Corporation (600028.SH)$、$Ping An Bank (000001.SZ)$、$Postal Savings Bank Of China (601658.SH)$(data as of October 11).

Southward Capital bought Tencent for 27 consecutive trading days.

It is worth mentioning that southward funds have been firmly buying Tencent recently. Since August this year, southward funds have accumulated a net purchase of 15.982 billion Hong Kong dollars (14.6 billion yuan) from Tencent.

Among them, southbound funds bought Tencent for 27 consecutive trading days from August 25 to October 12, with a cumulative net purchase of about HK $9.86 billion.

Despite the recent shock and fall of Tencent's share price, the company has always been determined to buy back shares.

Tencent announced that on the same day, the company repurchased 2.38 million shares of the company at a repurchase price of HK $248.2-HK $263.8 each, at a total cost of about HK $601 million.

Wind data displaySince August 2022, Tencent has made a total of 37 buybacks, buying a total of 45.23 million shares at a cost of 13.268 billion Hong Kong dollars (12.1 billion yuan). Since 2022, Tencent has made a total of 74 repurchases, with a repurchase amount of 23.281 billion Hong Kong dollars (about 21.3 billion yuan).

Chinese reporters from brokerages noted that recently, sellers' research reports were optimistic about Tencent, including Cinda Securities, Tianfeng Securities, Western Securities and other brokerages to give "buy" ratings. From the target price point of view, GF Securities Co., LTD., Cinda Securities target prices are above 400 Hong Kong dollars, of which GF Securities Co., LTD. 's target price is as high as 491.13 Hong Kong dollars.

Tianfeng Securities Research News pointed out that Tencent's fundamentals are solid, and with pessimistic expectations falling one after another, the company continues to reduce costs and increase efficiency, focusing on its core business, and is expected to see the company's inflection point signal in the next two years. From a business perspective, the company's core games provide basic performance support, and games going out to sea is expected to continue to drive growth. In addition, the rapid growth of video traffic has created considerable cash space, considering the company's investment in China, Hong Kong, Macao, Taiwan and overseas game companies is expected to boost overall game business revenue and give a "buy" rating.

Southbound funds have increased their holdings of Tencent, HSBC and XIAOMI since September.

Judging from the recent changes in the market value of southward capital holdings, including$CHINA RES BEER (00291.HK)$、$Koolearn Technology (01797.HK)$、$GREENTOWN CHINA (03900.HK)$、$China Overseas Land & Investment (00688.HK)$、$CHINA TELECOM (00728.HK)$、$Hygeia Healthcare Holdings (06078.HK)$、$BOSIDENG (03998.HK)$And other stocks, the largest increase in the market value of southward capital holdings since September.

Among them, except for China Resources Beer, who was reduced by southbound funds (the increase in market capitalization is mainly due to the rise in share prices), the rest of the stocks are the subject of recent increases in southbound funds.

According to Wind data, the three stocks with the largest decrease in the market value of shares held by southbound Capital (Hong Kong Stock Connect) since September this year are$TENCENT (00700.HK)$、$HSBC Holdings plc (00005.HK)$、$GEELY AUTO (00175.HK)$It decreased by 32.318 billion Hong Kong dollars, 13.229 billion Hong Kong dollars and 8.64 billion Hong Kong dollars respectively compared with September.

From the perspective of shareholding changes, southbound funds have greatly increased their holdings of Tencent and HSBC Holdings PLC since September, with the number of shares increasing by more than 2463 million shares and 5.718 million shares respectively, but the market capitalization has shrunk due to the recent decline in the share prices of Tencent and HSBC.

Among technology stocks, southbound Capital has increased its holdings by more than 31.43 million shares since September.$XIAOMI-W (01810.HK)$, more than 3.43 million shares$Meituan-W (03690.HK)$And reduced its holdings$KUAISHOU-W (01024.HK)$。