The Zhitong Finance App learned that on May 10, the Hong Kong Stock Exchange had a net purchase of HK$6.505 billion, of which Hong Kong Stock Connect (Shanghai) had a net purchase of HK$3.206 billion and the Hong Kong Stock Connect (Shenzhen) transaction made a net purchase of HK$3,299 billion.

The individual stocks that Beishui Net bought the most were Bank of China (03988), China Mobile (00941), and Agricultural Bank (01288). The most sold individual stock by Beishui Net is CNOOC (00883).

Hong Kong Stock Connect (Shanghai) actively traded stocks

Hong Kong Stock Connect (Shenzhen) actively traded stocks

Beishui Capital raised domestic bank stocks, and the Bank of China (03988), Agricultural Bank (01288), China Construction Bank (00939), and Industrial and Commercial Bank (01398) received net purchases of HK$903 million, $632 million, $223 million, and HK$156 million respectively. According to the news, J.P. Morgan Chase published a report saying that there are reports that the Securities Regulatory Commission and the State Administration of Taxation are reviewing a plan submitted by Hong Kong to exempt Hong Kong Stock Connect dividends from 20% profits tax. The bank said that since the after-tax yield gap between H shares and A shares will widen, it will benefit bank stocks, and CCB is expected to benefit the most. Lyon also said that if the proposal is implemented, it is believed that the dividend yield gap between A shares and H shares will be narrowed, and H share bank stocks will be the main beneficiaries because their dividend rates are very attractive, and state-owned banks with the highest dividend rates will benefit the most.

China Mobile (00941) received a net purchase of HK$841 million. According to the news, Huatai Securities pointed out that the total service revenue/net profit of the three major operators in 1Q24 increased 4.4%/6.1% year on year, respectively, continuing the steady growth trend. The growth rate of net profit to mother was higher than the growth rate of service revenue, indicating that the operating efficiency of the three major operators continued to improve. Emerging businesses continue to develop well. According to data from the Ministry of Industry and Information Technology, 1Q24 operators' cloud computing/big data business revenue increased 17%/37% year on year, respectively. Under the AIGC wave, subsequent operators' capital expenditure will be further skewed towards intelligent computing. According to reports, China Mobile and China Telecom plan to increase the dividend ratio to over 75% within 3 years from 2024, highlighting the high dividend value.

Tencent (00700) received a net purchase of HK$457 million. According to the news, Tencent will announce its results for the first quarter of this year next Tuesday (14th). Lyon released a research report saying that due to the decline in domestic game revenue, Tencent's revenue growth is expected to slow to 5.9% in the first quarter. The bank expects that with the stable revenue performance of Tencent's top two games, accelerated monetization of second-tier games, and the launch of new games such as the “DNF” mobile game, it is believed that online game revenue will resume growth in the second quarter. As for overseas game revenue, Supercell's new game “Squad Busters” will be released this month.

China Shenhua (01088) received a net purchase of HK$448 million. According to the news, Everbright Securities recently pointed out that the performance of coal companies in 24Q1 was divided, leading coal companies had more stable profits, and dividend ratios were higher than the industry average, showing outstanding investment value. The net profit of listed coal companies in 2024 is calculated using the annualized net profit of 2024Q1 and calculated based on the 2023 dividend ratio. Currently, the average dividend rate of the coal sector is 5.4%, of which the average dividend rate for the thermal coal sector is 5.5%, and the average dividend rate for the coking coal sector is 4.6%.

The Hong Kong Stock Exchange (00388) received a net purchase of HK$154 million. According to the news, according to media reports, China is reportedly considering reducing dividend tax on mainland individual investors investing in Hong Kong listed companies through Hong Kong Stock Connect. UBS believes that the relevant news is favorable to market sentiment. It is expected that the average daily turnover (ADT) of the Hong Kong Stock Exchange will increase by 4%, but the impact on revenue is only low in units. J.P. Morgan said that if the plan is adopted, it will have a significant benefit to the Hong Kong Stock Exchange's trading volume. If the turnover rises by 1 standard deviation to HK$141 billion, it will have an 11% impact on the earnings per share of the Hong Kong Stock Exchange.

Meituan-W (03690) received a net purchase of HK$24.06 million. According to the news, Citigroup released a report saying that it believes that Meituan's first-quarter results announced at the end of this month are stable and in line with market expectations. It is estimated that Meituan's first-quarter revenue was 68.6 billion yuan, an increase of 17% year-on-year; non-GAAP net profit is 6.3 billion yuan. The bank raised its target price from HK$128 to HK$134, reflecting a multiplier increase in the food delivery industry's target. In response to its double-digit revenue growth, continued improvement in profits and profit margins, and potential catalysts brought about by overseas expansion, Meituan Preferred's losses narrowed faster than expected, maintaining a “buy” rating.

CNOOC (00883) had a net sale of HK$392 million. According to the news, Morgan Stanley cancelled the risk premium of 4 US dollars/barrel in Brent's price forecast and returned to the forecast of 90 US dollars/barrel by the third quarter; it is expected that OPEC will extend the current production agreement at the upcoming June meeting, and eventually until the end of the year, including voluntary production cuts. Furthermore, according to media reports, Russia's crude oil production in April exceeded the voluntary production reduction target because production cuts fell short of promises.

In addition, Shangtang-W (00020) and Sunac China (01918) received net purchases of HK$23.38 million and HK$17.63 million respectively.