According to the Zhitong Finance APP, on November 15th, in the Hong Kong stock market, northbound capital recorded a net purchase of 0.922 billion HKD, with the Shanghai Stock Connect recording a net sell of 1.516 billion HKD, and the Shenzhen Stock Connect recording a net purchase of 2.438 billion HKD.

The stocks with the highest net purchases by northbound funds were Tencent (00700), CSOP Hang Seng Tech Index ETF (03033), and Ping An Insurance (02318). The stocks with the highest net sells were Tracker Fund of Hong Kong (02800), Hang Seng H-Share Index ETF (02828), and China United Network Communications (00762).

Active trading stocks in Hong Kong Stock Connect (Shanghai).

Active trading stocks in Hong Kong Stock Connect (Shenzhen).

Network technology stocks continue to be popular with domestic investors. Tencent (00700) received a net purchase of 0.63 billion HKD. According to a research report from Daiwa Capital Markets, Tencent's third quarter earnings were solid and surpassed expectations. Revenue grew by 8% year-on-year to 167.2 billion RMB, in line with market expectations. Gross margin expanded by 4 percentage points year-on-year to 53.1%, also meeting market expectations. Non-IFRS operating profit increased by 18.6% year-on-year to 61.3 billion RMB. The firm believes that Tencent’s gaming outlook is strong next year, as deferred revenue rose by 24% year-on-year to 106.6 billion RMB in the third quarter, indicating good growth momentum for the fourth quarter and the first quarter of the following year.

Alibaba-W (09988), Xiaomi Group-W (01810), and Meituan-W (03690) received net purchases of 0.39 billion, 0.262 billion, and 0.252 billion HKD respectively. In news, Alibaba will release its third quarter results today and has accumulated additional purchases exceeding 3.4 billion HKD this week. A research report from China Securities Co., Ltd. stated that the Hong Kong stock market has continuously corrected since October 8th, with the Hang Seng Index falling more than two-thirds of the increase from September 25th to October 7th. During the period of correction, both bullish and bearish factors were present, suggesting that the current correction in Hong Kong stocks is likely to be sufficient. With the recent decline in Hong Kong stocks and the divergence in trends between Hong Kong and A-shares, the valuation of Hong Kong stocks and the AH premium once again demonstrate high cost performance. China Securities Co., Ltd. believes that after the short-term impact ends, Hong Kong stocks may welcome an upward trend, making now a highly cost-effective time to invest in Hong Kong stocks, with the network technology sector being the most recommended.

Ping An Insurance (02318) received a net buy of 0.491 billion HKD. According to a research report from Citigroup, Ping An Insurance shows strong growth potential in new business value (NBV), and with product innovation and diversification of sales channels, the bank has assigned a "buy" rating to Ping An Insurance H shares with a target price of 52.5 HKD. The report quoted the company's management stating that a positive year-on-year NBV growth will be achieved in the first quarter of 2025, while the company has adjusted the incentive policy for its flagship product 'Yuxiang Jinyue' to promote sales of long-term policies (10 years and more).

The performance of the telecommunication sector is mixed, with China Mobile (00941) receiving a net buy of 0.423 billion HKD, while China United Network Communications (00762) experienced a net sell of 37.3655 million HKD. According to news, Wang Zhiqin, the head of the 6G promotion group and vice president of the China Academy of Information and Communications Technology, stated that the technical standard research for 6G will start in June 2025, the technical research stage will be completed between 2025 and 2027, and the first version of the technical specifications will be completed by March 2029. Currently, partners in the 3GPP standards, including China, Europe, the USA, Japan, South Korea, and India, are jointly developing 6G standards. Guoyuan International previously pointed out that the three major operators are continuously increasing their dividends. At the current stock price, their dividend yield is expected to further improve from the current level of around 6%.

Northbound funds sold off Hong Kong ETFs, with the Tracker Fund of Hong Kong (02800) and Hang Seng H-share Index ETF (02828) experiencing net sells of 5.744 billion and 0.951 billion HKD, respectively; while CSOP Hang Seng Tech Index ETF (03033) received a net buy of 0.516 billion HKD. According to reports, HTSC pointed out that with domestic fiscal policies further taking effect, the relative valuation of Hong Kong stocks has reached a neutral level, and with the recent tightening of overseas liquidity potentially slowing down, Hong Kong stocks may find support at the current valuation level. However, considering the risk of further unexpected tightening of overseas liquidity next year, there may be limited upward space for valuation from the current level, and the market may continue to oscillate within the current valuation range. In terms of allocation, holding positions in Hong Kong stocks should primarily be stable.

In addition, CNOOC (00883) received a net buy of 0.216 billion HKD; Semiconductor Manufacturing International Corporation (00981) received a net buy of 14.3437 million HKD.