On June 5th, Northbound funds bought a net 7.737 billion HKD in Hong Kong stocks, of which the Hong Kong Stock Connect (Shanghai) bought a net of 4.958 billion HKD, while the Hong Kong Stock Connect (Shenzhen) bought a net of 2.78 billion HKD.
Tencent (00700), China Mobile (00941), and Bank of China (03988) were the largest net buyers of northbound funds, while PetroChina (00857), Industrial and Commercial Bank of China (01398), and China Construction Bank (00939) were the largest net sellers.
Active trading stocks for Hong Kong stock connect (Shanghai).
Active trading stocks for Hong Kong stock connect (Shenzhen).
Tencent (00700) received a net buy of 1.136 billion HKD. According to GTJA, the "Tencent Yuanbao" app was launched, and the company officially entered the C-end AI assistant field. The new hybrid large-scale model, combined with a high-quality content ecology, has excellent performance in AI search and other functions. The bank is optimistic that AI capabilities will enable the company's various businesses to be empowered and effective, and that high-quality content ecology will also help improve the Tencent Yuanbao and other AI product experiences. It is believed that the company's high-quality ecology and AI product capabilities will promote each other and form a positive cycle.
China Mobile (00941) received a net buy of 937 million HKD. According to informed sources, Apple discussed launching Apple TV+ streaming services in China with China Mobile last year. Under the agreement, China Mobile provides the Apple TV+ service via a set-top box, charging a monthly fee, with the subscription revenue shared by both sides. The report also added that under Chinese law, Apple TV+ will not operate independently in the Chinese market, and its content may go online with Migu Video, a subsidiary of China Mobile.
China Bank (03988) received a net buy of 562 million HKD, while Industrial and Commercial Bank of China (01398) and China Construction Bank (00939) were net sellers of 109 million HKD and 67.23 million HKD respectively. Dongxing Securities analyst Lin Jinlu said that current policies emphasize stable bank interest margins and prevent high interest solicitation, and that the interest rate self-discipline mechanism will continue to maintain deposit competition order. Bank deposit listed interest rates may also be further lowered. Zhou Maohua, an analyst in the Financial Markets Department of China Everbright Bank, also believes that the pressure on net interest margins of banks is high, and that the deposit interest rate of banks still has a certain downward space due to the low market interest rates.
Tracker Fund of Hong Kong (02800) received a net buy of 415 million HKD. Zhejiang International pointed out that the market fundamentals are not showing significant improvement; the uncertainty of the fund side is large; the policy side is constantly adding new measures, but the pre-rise policy expectation is too high; with the market's retreat and the shrinkage of transaction volume, market sentiment has obviously fallen. Therefore, the bank still adopts a cautious attitude towards the short-term market trend. In the medium to long term, the bank believes that the valuation of the Hong Kong stock market is still more cost-effective than other national markets, and that the cost-effectiveness of the bottom batch configuration is higher.
Northbound funds increased their holdings of coal stocks, with China Shenhua Energy (01088) and Yankuang Energy (01171) receiving net buys of 274 million and 170 million HKD respectively. According to HTSC's research report, the coal industry has entered a net cash asset-liability state, and the continuous increase in dividend payout ratios drives the investment in the coal sector shift to dividend valuation logic. The bank pointed out that second and third-tier companies have the potential to increase dividends under steadily rising coal prices, with higher stock price elasticity.
China Hongqiao (01378) received a net buy of 253 million HKD. According to Mysteel, the domestic spot price of alumina rose sharply in May, with the weighted average monthly price of alumina being 3745 yuan/ton, up 416 yuan/ton from the previous month, a month-on-month increase of 12.50%. HTSC Futures pointed out that there has been some progress in the resumption of production of bauxite mines in Henan and Shanxi provinces due to safety and environmental reasons, but the current resumption of production has not increased capacity, and it may be difficult to achieve a large-scale resumption of production in the short term. The shortage of locally produced and supplied ore in the Shanxi and Jin coal-producing areas may further support the spot prices. At present, alumina plants that previously used domestically produced ore to produce alumina need to supplement imported bauxite in order to maintain production.
Semiconductor Manufacturing International Corporation (00981) received a net purchase of HKD 122 million. In terms of news, Soochow Securities stated that the third phase of Da Ji Fund raising has landed, with a scale of CNY 344 billion, creating a record high in history. Guangdong State-owned Assets and Tianjin State-owned Assets are both new investment units. It is determined that the investment ratio for local project reinvestment in the future will increase significantly. The direct beneficiaries of heavy-asset characteristic wafer factories are the most significant beneficiaries (advanced process FAB expansion will accelerate); equipment belongs to indirect beneficiaries.
Domestic investors sold petroleum stocks, and China Petroleum (00857) and CNOOC (00883) suffered net sales of HKD 347 million and HKD 40.84 million, respectively. In terms of news, Zheshang Securities pointed out that on June 2, OPEC + formally agreed to extend the voluntary production reduction measure of 2.2 million barrels/day to the end of September 2024, but also stated that OPEC+ will gradually cancel the voluntary production reduction measure from October 2024 to September 2025. The market is worried that there may be a gradual cancellation of production cuts after the fourth quarter of this year, reversing the current tight supply situation, and on June 3, oil prices showed significant falls. However, Saudi Arabia also made additional explanations at the meeting, mentioning that everything will be based on market conditions, and the plan to gradually cancel production cuts in the future may also be reversed.
In addition, Xiaomi Group-W (01810) and Meituan-W (03690) received a net purchase of HKD 169 million and HKD 119 million, respectively.