According to the WiseMoney App, on June 28th, the Hong Kong stock market saw a net buy of 3.662 billion Hong Kong dollars by Northbound investors, including a net buy of 1.427 billion Hong Kong dollars through the Shanghai-Hong Kong Stock Connect and a net buy of 2.235 billion Hong Kong dollars through the Shenzhen-Hong Kong Stock Connect.

China Mobile (00941), Industrial and Commercial Bank of China (01398), and China Construction Bank (00939) were the three stocks with the highest net buy by Northbound investors. Tracker Fund of Hong Kong (02800), China Shenhua Energy (01088), and China National Offshore Oil (00883) were the three stocks with the highest net sell.

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

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

Northbound investors aggressively bought telecommunication stocks throughout the day, with China Mobile (00941), China United Network Communications (00762), and China Telecom (00728) receiving net buys of 1.261 billion, 145 million, and 88.68 million Hong Kong dollars respectively. In terms of news, the 2024 Shanghai World Mobile Communications Conference kicked off on June 26th, and the three major telecommunications operators, including China Mobile, announced strategies for developing the low-altitude economy and exploring new areas of business growth in order to further tap into the potential of 5G-A commercial services. In addition, analysts at Goldman Sachs believe that the potential of Chinese dividend assets has not been fully recognized, and they have previously stated that they maintain a positive outlook for the three major Chinese telecommunications stocks in the second half of the year and believe that a stock dividend discount model is a long-term valuation method for sustainable profits.

Northbound investors continued to favor mainland banking stocks, with Industrial and Commercial Bank of China (01398) and China Construction Bank (00939) receiving net buys of 475 million and 473. million Hong Kong dollars, respectively. In terms of news, JPMorgan recently published a research report stating that seven banks have held shareholder meetings in the past few days, with China Merchants Bank, Industrial and Commercial Bank of China, and Minsheng Bank releasing meeting minutes. The bank believes that due to stable net interest margins and asset quality, the interpretation of the entire industry is positive. However, Morgan Stanley believes that the outlook for Chinese banking stocks is more optimistic and that global investors are overly pessimistic about the impact of a weak real estate market and economic slowdown on bank profits.

Tencent (00700) received a net buy of 10.59 million Hong Kong dollars. Shenzhen Securities Information Co., Ltd. predicts that the first-month revenue for the DNF mobile game will exceed 5 billion yuan, outperforming market expectations. Based on the proportion of the first-year monthly revenue to the first-month revenue of 42% for the Korean version, the domestic version's first-year revenue is expected to reach 25.2 billion yuan, calculated on the basis of 5 billion yuan first-month revenue. In addition, the removal of DNF mobile games from some Android app stores is expected to raise the game's profit margins.

CNOOC (00883) received a net sell of 25.56 million Hong Kong dollars. In terms of news, Citigroup published a report stating that oil prices have skyrocketed in the past three weeks, with Brent crude oil breaking through $86 per barrel. However, the bank believes that the current oil price is too high, and that the oil price has significantly exceeded its intrinsic value under the influence of geopolitical concerns, supply, and demand expectations. Looking ahead, the bank expects uncertainties in demand in major oil-consuming regions, and the third quarter will face significant risks for oil prices. However, continued geopolitical risk pressure, along with tensions between Russia and Ukraine and in the Middle East, provides a possibility for oil prices to rise.

China Shenhua Energy (01088) received a net sell of 108 million Hong Kong dollars. In terms of news, HSBC previously stated that it expects production in Shanxi to gradually recover, as the full-year production reduction target has been reached. The province's output increased by 8% on a monthly basis, but fell 7% year-on-year. The bank expects China's local coal production to rebound in the second half of the year compared to the first half, but to decrease annually. The bank raised its profit forecast for Shenhua this year by 1%, and its target price for Shenhua's H shares was raised from HK$31 to HK$35, maintaining a "hold" rating. The bank pointed out that short-term pressure on coal spot prices limited the stock's upside potential.

Tracker Fund of Hong Kong (02800) received a net sell of 569 million Hong Kong dollars. In terms of news, Xing Cheng, portfolio manager of the Hang Seng Qianhai Selected Mix Fund, stated that although the current monetary policy environment and financing conditions are generally loose, low expected yields hinder the credit expansion ability and willingness of residents and enterprises, resulting in a three-step recovery process. Therefore, national policies have become the main reliance. At the same time, attention should be paid to the possibility that the United States may continue to maintain a high-interest-rate policy, which may lead to a surge in US government bond yields, a strong US dollar, and negative pressures such as capital outflows and valuation compression in the Hong Kong stock market.