The Zhitong Finance App learned that on April 30, the Hong Kong Stock Exchange had a net purchase of HK$3.249 billion, of which the Hong Kong Stock Connect (Shanghai) transaction made a net purchase of HK$2.77 billion and the Hong Kong Stock Connect (Shenzhen) transaction made a net purchase of HK$479 million.

The individual stocks that Beishui Net bought the most were Bank of China (03988), China Construction Bank (00939), and China Mobile (00941). The individual stocks sold the most by Beishui Net were Ideal Automobile-W (02015), Tencent (00700), and CNOOC (00883).

Hong Kong Stock Connect (Shanghai) actively traded stocks

Hong Kong Stock Connect (Shenzhen) actively traded stocks

Domestic bank stocks were slightly divided. Bank of China (03988) and China Construction Bank (00939) received net purchases of HK$1.06 billion and HK$127 million respectively. Meanwhile, ICBC (01398) had a net sale of HK$12.79 million. According to the news, UBS published a report stating that the fundamentals of the Bank of China were still weak in the first quarter. It is expected that most banks' earnings will resume positive growth in the 2024 fiscal year as the base is lower in the next few quarters. On the positive side, the continuous decline in net interest spreads has narrowed markedly and is better than expected. With the implementation of the new capital rules, most banks' CET-1 ratios have increased. Meanwhile, some state-owned banks have confirmed plans to start paying interim dividends in the first half of the year, with an annual dividend payout ratio of no more than 30%.

China Mobile (00941) received a net purchase of HK$115 million. According to the news, Morgan Stanley previously indicated that China Mobile's first-quarter service revenue increased 4.5% year-on-year, which is basically in line with the bank's expectations. EBITDA fell 2.3% year-on-year, which is 3% lower than the bank's expectations. However, net profit increased 5.5% year-on-year, roughly in line with expectations, as weak EBITDA was offset by a reduction in depreciation and amortization (D&A) expenses. The bank maintains an “gain” rating on China Mobile, with a target price of HK$80.

Domestic housing stocks are also now divided. Vanke Enterprise (02202) received a net purchase of HK$70.92 million, while Sunac China (01918) received a net sale of HK$24.39 million. According to the news, CITIC Construction Investment pointed out that the relaxation of the purchase restriction policy is of great significance in releasing demand for home purchases and promoting the recovery of the property market, and cities that currently maintain purchase restriction policies are expected to continue to relax in the future. However, J.P. Morgan believes that the surge in domestic housing stocks may only be short-lived. As sales in April were worse than expected, a sustainable rebound in the industry requires a sustainable recovery in sales and a stronger policy response.

Shangtang-W (00020) received a net purchase of HK$68.13 million. According to the news, on April 23, Shangtang held a 2024 technical exchange day and released the 600 billion parameter large model “Daily New 5.0,” which greatly improved knowledge, mathematics, reasoning, and coding abilities, and comprehensively benchmarked GPT-4 Turbo. According to SDIC Securities, generative AI is gradually moving from technology to application implementation, driving the increase in demand for commercial orders. Based on technical capabilities and customer reputation, the company is expected to gain a certain market share and drive performance growth. Furthermore, Shangtang's big model UniAD, which integrates perception and decision-making, debuted at the Beijing Auto Show.

China Hongqiao (01378) received a net purchase of HK$25.18 million. According to the news, China Hongqiao announced the results of the subsidiary Shandong Hongqiao from January to March 2024. The group achieved operating revenue of RMB 34.763 billion during the period, an increase of 6.07% over the previous year; net profit of RMB 4.341 billion, an increase of 629.3% over the previous year. Haitong International pointed out that in 2023, domestic demand for electrolytic aluminum recovered beyond expectations, favorable policies in the fields of real estate and new energy were introduced one after another, and downstream consumer side policy support was strong, driving revenue growth in the face of weakening foreign demand.

Ideal Automobile-W (02015) had a net sale of HK$89.85 million. According to the news, CCB International released a report stating that Ideal Auto's first-quarter slowdown did not affect the full-year plan. Considering the scale and stable battery prices, the bank expects the profit margin for new cars to be around 21% to 22% from 2024 to 2025, but retail discounts may affect sales and administrative expenses. Considering increased competition, shipments in 2024 and 2025 are projected to be reduced by 120,000 and 110,000 vehicles, respectively, to 500,000 and 640,000 units, respectively, and adjusted profit estimates by 12% and 10%, respectively, to 15.6 billion yuan and 19.9 billion yuan respectively.

In addition, CNOOC (00883) and Tencent (00700) were net sold at HK$70.5 million and HK$79.48 million respectively.