The Zhitong Finance App learned that on May 17, the Hong Kong Stock Exchange had a net purchase of HK$5.957 billion, of which the Hong Kong Stock Connect (Shanghai) transaction made a net purchase of HK$3.356 billion and the Hong Kong Stock Connect (Shenzhen) transaction made a net purchase of HK$2,601 billion.

The individual stocks that Beishui Net bought the most were Bank of China (03988), Tencent (00700), and China Construction Bank (00939). The most sold individual stock by Beishui Net is CNOOC (00883).

Hong Kong Stock Connect (Shanghai) actively traded stocks

Hong Kong Stock Connect (Shenzhen) actively traded stocks

Domestic bank stocks continue to be sought after, with Bank of China (03988) and China Construction Bank (00939) receiving net purchases of HK$1.17 billion and HK$643 million respectively. According to the news, the central bank and other departments have issued three consecutive notices to adjust interest rates on provident fund loans, lower commercial loan interest rate policy limits, and down payment ratios for home purchases. Furthermore, the General Financial Supervisory Authority recently issued new regulations to broaden the scope of AMC's acquisition of non-performing assets. Guolian Securities recently pointed out that overall, banking fundamentals are currently gradually being found to the bottom. After the effects of adverse factors are gradually digested, fundamentals are expected to pick up.

Tencent (00700) received a net purchase of HK$864 million. According to the news, Bank of America Securities published a report saying that Tencent's adjusted net profit for the first quarter rose 54% year-on-year to 50.3 billion yuan, far higher than market expectations of 43 billion yuan. Thanks to faster gross profit growth and reduced operating expenses, gross margin improved to 53%, higher than 50% of market forecasts. Gross profit increased 23% year-on-year, far faster than revenue growth, benefiting from rapid growth in high-margin revenue streams, including video account ads, WeChat search ads, applet game platform service fees, wealth management service revenue, e-commerce technology service fees, and cost efficiency improvements in long video and cloud businesses.

Beishui raised domestic housing stocks, and China Resources Land (01109), Vanke Enterprise (02202), and Sunac China (01918) received net purchases of HK$393 million, 89.4 million, and HK$73.68 million respectively. According to the news, the central bank, the State Financial Supervisory Administration and other departments issued three major notices in a row during the afternoon. The notice proposed that the minimum down payment for the first housing commercial loan will be adjusted to no less than 15%, and the minimum down payment for the second commercial loan will be adjusted to no less than 25%; the interest rate on personal housing provident fund loans will be lowered by 0.25 percentage points from May 18; and the lower interest rate policy limit for commercial personal housing loans for the first home and two housing units will be abolished at the national level. Yan Yuejin, research director of the Yiju Research Institute, pointed out that this policy is the most relaxed down payment policy in the history of home buying in China, and it has a very obvious effect on driving market transactions.

Petroleum stocks diverged. CNPC (00857) received a net purchase of 263 million dollars, and CNOOC (00883) was net sold at HK$258 million. According to the news, the International Energy Agency (IEA) recently lowered its forecast for oil demand growth in 2024, further widening the agency's differences of opinion with the Organization of Petroleum Exporting Countries OPEC (OPEC) on the outlook for global oil demand this year. As for global oil demand in 2025, the IEA expects a daily increase of 1.2 million barrels. In contrast, the OPEC organization expects oil demand to grow by 1.85 million b/d next year.

Ping An of China (02318) received a net purchase of HK$202 million. According to the news, China Aviation Securities pointed out that since mid-April, the insurance sector has continued to fluctuate upward, mainly benefiting from the expected improvement of pressure on the asset side. First, on April 22, the Ministry of Finance stated that it will “promptly begin issuing ultra-long-term special treasury bonds,” which is expected to drive a steady recovery in long-term interest rates. Second, favorable real estate policies have continued to increase, and the real estate sector continues to rebound. Real estate's pressure on the insurance asset side is expected to ease. However, judging from the performance of insurers reported in the first quarter, the value of insurers' new business has rebounded, and the debt side is expected to improve further.

China Mobile (00941) received a net purchase of HK$100 million. According to the news, J.P. Morgan Chase previously stated that if the policy on exempting Hong Kong Stock Connect dividend profits tax is implemented, it is expected that more capital will flow into Chinese telecommunications stocks listed in Hong Kong because of the relatively high dividend return of such shares, with a dividend rate of about 8%, and a compound annual dividend growth rate of more than 10% per share, which is very attractive, maintaining a “gain” rating for China Telecom stocks. The bank pointed out that it is optimistic about Unicom in the short term and will choose China Mobile in the long term.