On June 18th, northbound funds net sold 2.312 billion yuan of A shares, marking the 7th consecutive day of net sales.

Kweichow Moutai, Zijin Mining Group, and Inner Mongolia Yili Industrial Group were net sold for 1.675 billion yuan, 839 million yuan, and 362 million yuan respectively; Luxshare Precision Industry, Eoptolink Technology Inc., and Chongqing Sokon Industry Group Stock were net bought against the trend, with 656 million yuan, 386 million yuan, and 324 million yuan respectively.

Southbound funds net bought 5.861 billion Hong Kong dollars of Hong Kong stocks. China Construction Bank Corporation, Zijin Mining Group, and China Mobile were net bought for 550 million Hong Kong dollars, 539 million Hong Kong dollars, and 518 million Hong Kong dollars respectively; Tencent and Meituan were net sold for 275 million Hong Kong dollars and 67.64 million Hong Kong dollars respectively.

According to statistics, southbound funds have been net buying China National Offshore Oil for 8 consecutive days, totaling 3.00939 billion Hong Kong dollars; and have been net buying Bank of China Corporation for 3 consecutive days, totaling 1.24334 billion Hong Kong dollars.

Individual Stocks Concerned: China Mobile: On the news front, Goldman Sachs issued a research report stating that the company's management maintained its expectations for stable growth in revenue and profit in 2024. Due to increased R&D and marketing expenses for enterprise business (cloud, artificial intelligence, industrial internet, etc.), EBITDA profit margin continued to show a downward trend, but the slowdown in depreciation costs helped support the trend of stable net profit margin. The management believes that the dividend payout ratio can be increased from 71% to the target of 75% in 2026. Goldman Sachs believes that stable business growth and steady capital expenditures should help China Mobile gradually increase its dividends. Chinahongqiao:

Kweichow MoutaiIt fell 1.3%, closing at 1521.50 yuan. Recently, the baijiu and food and beverage sectors have been showing signs of fatigue. According to Wind statistics, the total market value-weighted decline of the baijiu industry in the Shenwan second-level industry from May 8th to June 17th reached 13.24%. Sealand Securities pointed out that the decline in Moutai's ex-factory price was due to the increase in subsidies for the 618 promotion by e-commerce platforms, combined with the economic downturn, resulting in marginal supply-demand imbalance. As the 618 promotion draws to a close, it is expected to stabilize and gradually recover thereafter.

Luxshare Precision Industry.It rose 2.68%, closing at 37.99 yuan. On June 18th, according to the National Enterprise Credit Information Disclosure System, Intel (China) Co., Ltd. appeared on the latest shareholders list of Dongguan Luxshare Precision Industry Co. Ltd. (Dongguan Luxshare Technology), with a contribution of RMB 17.66 million, and the registered capital increased from approximately RMB 571 million to approximately RMB 589 million. Relevant personnel of Luxshare Precision confirmed the investment and said that the cooperation between the two parties mainly focuses on the data center business.

Zijin Mining GroupIt fell 0.7%, closing at 16.92 yuan. On the morning of June 18th, Zijin Mining Group announced that it had completed a HKD 2.5 billion refinancing in the Hong Kong stock market for overseas investors, including USD 2 billion of convertible bonds and USD 500 million of allocation. The final pricing of the stock issue was at a discount of 5%, the coupon rate of the convertible bonds was 1%, and the conversion premium was 28% (compared to the issue price).

Materials of the companies of North Water

China Construction Bank CorporationIt rose 1.45%, closing at 5.61 Hong Kong dollars. Goldman Sachs expects that the central bank will 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. Guolian Securities stated that the current fundamentals of banks are slightly under pressure, but as banks gradually abandon the "scale complex" and turn to high-quality development, the fundamentals of banks are expected to gradually stabilize in the future. In terms of individual stocks, it is recommended to focus on symbols with relatively strong earnings certainty, and on high-dividend symbols.

China MobileIt rose 0.69%, closing at 73.10 Hong Kong dollars. Goldman Sachs released a report stating that the outlook for the second half of the year for the three major Chinese telecommunications stocks, China Mobile, China Telecom, and China United Network Communications, remains positive, and believes that the relevant shares are in line with the dividend discount model as a long-term value evaluation. Based on a clear dividend rate target, a stable business and profit growth portfolio, the expected free cash flow from 2021 to 2026 exceeds the realized distribution target given for pure net profit, and the ability to promote shareholder returns and management market value under the indicators of SOE performance.

Tencent HoldingsIt fell 1.1%, closing at 377 Hong Kong dollars. According to documents from the Hong Kong Stock Exchange, Tencent repurchased 2.64 million shares on June 18th, with a repurchase price of 377-383.6 Hong Kong dollars per share, for a total expenditure of approximately 1.003 billion Hong Kong dollars.

MeituanIt fell 1.54%, closing at 115 Hong Kong dollars. On June 17th, the company announced that it had repurchased 4.3046 million shares on the Hong Kong Stock Exchange on June 17, 2024, at a cost of HKD 500 million. Based on the number of shares repurchased and the cost, the repurchase price was approximately HKD 116.15. According to the disclosure, the highest repurchase price was 117.60 Hong Kong dollars and the lowest repurchase price was 112.40 Hong Kong dollars.