On Hong Kong's stock market on July 25, the net amount sold by Northbound funds was HKD 4.66 billion, of which HKD 1.838 billion was sold on the Shanghai-Hong Kong Stock Connect and HKD 2.823 billion was sold on the Shenzhen-Hong Kong Stock Connect.
According to the Zhitong Finance APP, on July 25th, the Hong Kong stock market saw a net sales of HKD 4.66 billion by mainland investors, of which HKD 1.838 billion were net sales from the Shanghai-Hong Kong Stock Connect and HKD 2.823 billion were net sales from the Shenzhen-Hong Kong Stock Connect.
The stocks with the largest net purchase by Northbound funds are Tencent (00700) and China Construction Bank (00939). The stocks with the largest net sale by Northbound funds are Tracker Fund of Hong Kong (02800), CSOP Hang Seng Tech Index ETF (03033), and Hang Seng H-Share Index ETF (02828).
Active trading stocks for Hong Kong stock connect (Shanghai).
Active trading stocks for Hong Kong stock connect (Shenzhen).
Tencent (00700) received a net purchase of HKD 0.551 billion. In terms of news, Morgan Stanley released a research report that the bank expects the company's second-quarter revenue and adjusted operating profit to increase by 7% and 25% year-on-year, respectively. With the success of the mobile game "DNF," they are optimistic about the prospects of its domestic gaming business. Meanwhile, advertising growth should remain strong, and gross margin should continue to expand. Tencent's share buyback volume in the second quarter is more than twice the amount of shares sold by its major shareholder Prosus, and is expected to achieve its goal of repurchasing over CNY 100 billion by 2024.
China Construction Bank (00939) received a net purchase of HKD 0.115 billion. In terms of news, on July 22, the central bank announced a reduction in the 7-day reverse repurchase and LPR quotation rates. Huafu Securities pointed out that overall, the interest rate cut is good for the banking sector. Although static analysis shows that the interest rate cut has a negative impact on bank interest margins, the magnitude is relatively controllable and within market expectations. In the medium and long term, the interest rate cut helps boost credit demand, improve economic expectations, and is therefore beneficial for the banking fundamentals. Some institutions also believe that under the background of stabilizing bank net interest margins and adjusting deposit rates according to market-oriented rates, bank deposit rates are expected to face a new round of downward adjustment.
Petroleum stocks were sold, with PetroChina (00857) and CNOOC (00883) receiving net sales of HKD 0.167 billion and HKD 0.45 billion, respectively. In terms of news, Zhuochuang Information's refined oil analyst Xu Lei stated that the strengthening US dollar has caused concerns about oil demand in the market. In addition, the expectation of eased tension in the Middle East overshadowed the prospect of Fed rate cuts, and bearish news dominated the crude oil market, causing international crude oil prices to continuously decline. Liu Bingjuan, a refined oil analyst at Longzhong Information, believes that although the expectation of a Fed rate cut in September has increased, it still needs time. In the short term, the US dollar is still strong, and economic and demand concerns are difficult to resolve. International oil prices may be under pressure in the future.
Zijin Mining Group (02899) received a net sale of HKD 0.239 billion. In terms of news, Xingzheng Futures pointed out that the stimulus effect of the expected rate cut on precious metal prices is limited. The driving force of precious metals is insufficient until the expectation of the rate cut increases further. Due to the rising expectation of economic recession, silver performs weaker than gold. However, on the other hand, the number of Fed rate cuts in the second half of the year is uncertain. Previously, gold prices continued to rise and encountered significant resistance. The current expectation of a rate cut cannot sustain the rise in gold prices.
Hong Kong stock ETFs were sold by Northbound funds, with Tracker Fund of Hong Kong (02800), CSOP Hang Seng Tech Index ETF (03033), and Hang Seng H-Share Index ETF (02828) receiving net sales of HKD 2.117 billion, HKD 0.999 billion, and HKD 0.744 billion, respectively. In terms of news, Tianfeng Securities pointed out that although there is a phase of rebound in the Hong Kong stock market, it is still suppressed by fundamental factors as a whole. Looking ahead, with the significant improvement in the sentiment of domestic and foreign capital, there has been a significant rebound in Hong Kong stocks. Its sustainability and rising space require more solid fundamental data to be matched with. During the period of economic recovery verification, it still maintains a cautious and optimistic attitude.
China Mobile (00941) received a net sale of HKD 48.54 million.