The Zhitong Finance App learned that on April 29, the Hong Kong Stock Exchange had a net purchase of HK$2,753 billion, of which Hong Kong Stock Connect (Shanghai) had a net purchase of HK$2.181 billion and the Hong Kong Stock Connect (Shenzhen) transaction had a net purchase of HK$572 million.
The individual stocks that Beishui Net bought the most were Bank of China (03988), Shangtang-W (00020), and Sunac China (01918). The individual stocks sold the most by Beishui Net were China Mobile (00941), Tencent (00700), and Vanke (02202).
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) and China Construction Bank (00939) received net purchases of HK$1,582 billion and HK$88.32 million respectively. According to the news, Ping An Securities pointed out that continued interest rate cuts and an increasingly serious “asset shortage” had a significant negative impact on bank operations. Further release of repricing pressure in the first quarter may drive industry interest spreads to narrow further, but at the stock allocation level, the continued decline in risk-free interest rates also further highlighted the value of banks' fixed income allocations based on high dividends. Looking at the whole year, the restoration of consumer spending tendencies and risk appetite is still worth looking forward to, and has become a catalyst for the sector's profit and valuation recovery.
Shangtang-W (00020) received a net purchase of HK$372 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.
Domestic housing stocks were slightly divided. Sunac China (01918) received a net purchase of HK$204 million, while Vanke (02202) had a net sale of HK$71.04 million. According to the news, Chengdu has completely lifted purchase restrictions. CITIC Construction Investment pointed out that the relaxation of purchase restriction policies 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.
CNOOC (00883) received a net purchase of HK$172 million. According to the news, CICC published a research report stating that CNOOC's revenue in the first quarter increased 14% year-on-year, and net profit increased by 23.7%. Production exceeded expectations, driving quarterly performance higher than market expectations. CICC remains optimistic about CNOOC's production growth. It is expected that the annual production will exceed the 2024 guideline limit of 720 million barrels of oil equivalent. It also indicates that oil price fluctuations between today and next two years may decrease, or hover at the level of 75 to 95 US dollars. The cyclical impact will ease, and the company's outlook is expected to increase in visibility.
The Hong Kong Stock Exchange (00388) received a net purchase of HK$121 million. According to the news, Goldman Sachs published a research report indicating that the Hong Kong Stock Exchange benefited from increased investment income, and net profit per share in the first quarter beat expectations. Since there is no management meeting to announce quarterly results, the bank is expected to drive stock prices by rising average daily turnover (ADT) of equity securities, stock market liquidity reforms, and revenue growth related to derivatives. Guotai Junan believes that if the China Securities Regulatory Commission announced cooperation measures with Hong Kong and it is expected that the direction of the US dollar interest rate cut cycle will not change, investment and financing activity in the Hong Kong stock market is expected to increase, driving the company's revenue growth.
China Mobile (00941) had a net sale of HK$605 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.
Additionally, HSBC Holdings (00005) received a net purchase of HK$11.13 million. Meanwhile, Tencent (00700) had a net sale of HK$331 million.