Zhì tōng cái jīng APP learned that on June 18th, the Hong Kong stock market had a net buy of HKD 5.861 billion by Northbound investors. Among them, the trading volume of Shanghai-Hong Kong Stock Connect had a net buy of HKD 2.533 billion, and that of Shenzhen-Hong Kong Stock Connect had a net buy of HKD 3.328 billion.

The stocks with the highest net purchase of northbound funds are China Construction Bank (00939), Zijin Mining (02899), and China Mobile (00941). Tencent (00700) is the most sold-out stock by northbound capital.

Active trading stocks for Hong Kong stock connect (Shanghai).

Active trading stocks for Hong Kong stock connect (Shenzhen).

Northbound funds continue to increase their holdings of mainland banking stocks. China Construction Bank (00939), Bank of China (03988), and Industrial and Commercial Bank of China (01398) received net purchases of HKD 549 million, HKD 490 million, and HKD 228 million respectively. In terms of news, Goldman Sachs expects the central bank to lower the deposit reserve ratio by 25 basis points in the third quarter and cut interest rates by 10 basis points in the fourth quarter. CITIC Securities said that looking ahead, the optimization of financial and entity matching will actually enhance the stability of the financial system, and financial support for entities will be more sustainable. We believe that the multi-party policy launch in the early stage is conducive to improving bank risk expectations, and bank stock valuations are more fundamentally supported by dividend income space certainty.

Zijin Mining (02899) received a net purchase of HKD 539 million. In terms of news, Zijin Mining announced that it plans to issue bonds of up to $2 billion, and discount approximately 5.02% to raise a maximum net capital of approximately HKD 3.871 billion. It is reported that in mid-May, the company released a 'five-year development plan' and plans to achieve an increase of about 50% in both copper and gold production by 2028 based on the 2023 baseline, achieving over 1.5 million tons of copper, over 100 tons of gold, and more than 250,000 tons of equivalent lithium carbonate. The production growth target continues to lead the global metal mining industry.

China Mobile (00941) received a net purchase of HKD 517 million. In terms of news, Goldman Sachs released a report stating that the outlook for the second half of the year for China Mobile, China Telecom, and China Unicom, the three major Chinese telecommunications stocks, remains positive, and that the relevant shareholding conforms to the long-term value evaluation as a dividend-discounting model, based on clear dividend rate targets, stable business and profit growth combinations, and the ability to achieve dividend target capabilities beyond pure profits from 2021 to 2026. In addition, corporate performance indicators are used to promote shareholder returns and management market value.

CNOOC (00883) received a net purchase of HKD 266 million. In terms of news, Changjiang Securities pointed out that looking ahead, the center of gravity of oil prices is expected to be in the middle and high positions. As China's largest offshore oil and gas producer, CNOOC will fully benefit from high oil prices and the realization of its own growth potential. Compared with American companies represented by Occidental Petroleum, CNOOC's valuation is currently relatively low. With the progressive manifestation of CNOOC's profit advantage, there is still great room for improvement in the company's valuation.

Northbound funds increased their holdings of chip stocks, with Hua Hong Semiconductor (01347) and Semiconductor Manufacturing International (00981) receiving net purchases of HKD 130 million and HKD 92.72 million, respectively. In terms of news, according to media reports, TSMC may initiate new price increase negotiations in the second half of the year, mainly for 5nm and 3nm, as well as future 2nm processes. The decision to raise prices is expected to take effect as early as 2025. Another report stated that the price increase for TSMC's 3nm foundry rose by more than 5%, and the price increase for advanced packaging next year was between 10% and 20% of annual reports. Morgan Stanley recently stated that the utilization rate of Hua Hong Semiconductor's wafer factory has exceeded 100%, and it is expected to raise wafer prices by 10% in the second half of this year.

In addition, Kingkey Financial International (01468) received a net purchase of HKD 7.48 million, while Tencent (00700) was sold a net HKD 275 million.