According to the Zhittong Finance APP, on July 26, the Hang Seng Index saw a net buying of 8.773 billion Hong Kong dollars from the Northbound capital. Among them, the Shanghai-Hong Kong Stock Connect saw a net buying of 4.881 billion Hong Kong dollars, and the Shenzhen-Hong Kong Stock Connect saw a net buying of 3.892 billion Hong Kong dollars.

The top three stocks with the highest net buying from Northbound capital are Tracker Fund of Hong Kong (02800), Hang Seng H-Share Index ETF (02828), and CSOP Hang Seng Tech Index ETF (03033). The top three stocks with the highest net selling from Northbound capital are China Mobile (00941), China Construction Bank (00939), and China United Network Communications (00762).

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

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

Domestic investors increased their holdings in Hong Kong ETFs, and Tracker Fund of Hong Kong (02800), Hang Seng H-Share Index ETF (02828), and CSOP Hang Seng Tech Index ETF (03033) received net buying of 6.01 billion, 1.247 billion, and 1.039 billion Hong Kong dollars respectively. On the news side, on July 25, the National Development and Reform Commission and the Ministry of Finance issued a notice to plan for the issuance of special bonds of about 300 billion yuan for ultra-long-term periods to support large-scale equipment updates and the replacement of consumer goods with new ones. Zhongtai International pointed out that the current decline in the Hang Seng Index continues to approach the support point of the late-April index upward movement, the attractiveness of valuations and the ratio of short selling continue to rise, and positive news on the margin can easily catalyze a short-term rebound in the Hong Kong stock market, while the key to sustained upward momentum lies in more fundamental data turning stronger.

Tencent (00700) received net buying of 0.528 billion Hong Kong dollars. On the news side, Nomura pointed out that Tencent's online gaming revenue may increase by 10% annually, driven by a 9.6% annual increase in domestic gaming revenue and an 11% annual increase in overseas gaming revenue. Tencent's domestic gaming business may rebound in the second quarter, as a new heavyweight game "Dungeon and Warrior" was released in China and has remained the top daily revenue-generating game since its release on May 21. Morgan Stanley released a research report stating that Tencent's share buyback volume in the second quarter was more than twice the amount sold by major shareholder Prosus, and is expected to achieve its goal of repurchasing over 100 billion yuan by the 2024 fiscal year.

During the trading day, East Buy (01797) fell nearly 30% and attracted some Northbound funds to buy on dips, with a net buying of 0.18 billion Hong Kong dollars for the whole day. On the news side, East Buy announced that well-known anchor Dong Yuhui resigned and would sell his live-streaming account "Walking with Hui" for more than 76.58 million yuan. Daiwa Securities believes that although it believes that East Buy will continue to promote growth by expanding its own brand SKUs and creating high-quality content, considering that the market reaction has not been ideal, Daiwa believes that the company's future operations are still facing competition and public opinion pressure from "Walking with Hui", and it has downgraded East Buy's revenue and profit forecasts.

High-dividend assets were sold off by domestic investors, with China Mobile (00941), China Construction Bank (00939), China United Network Communications (00762), and China Construction Bank (00939) seeing net selling of 0.949 billion, 0.716 billion, 96.15 million, and 20.53 million Hong Kong dollars respectively. On the news side, Jianghai Securities pointed out that the central bank's reverse repo operations will affect the supply and demand of bonds and thus disturb yield curves, which may affect the investment logic of high-dividend assets to a certain extent. However, we believe that this impact is short-term, and the trend of domestic risk-free interest rates declining in the medium term has not changed. Therefore, we reiterate that the investment logic driven by high dividends has not changed, and a strong growth does not necessarily mean weak dividends, as both may coexist.

In addition, Xiaomi Group-W (01810) received net buying of 72.51 million Hong Kong dollars, while Meituan-W (03690) received net buying of 2.93 million Hong Kong dollars.