The Zhitong Finance App learned that on May 16, the Hong Kong Stock Exchange had a net purchase of HK$3,973 billion, of which Hong Kong Stock Connect (Shanghai) had a net purchase of HK$2,053 billion and the Hong Kong Stock Connect (Shenzhen) transaction made a net purchase of HK$1.92 billion.

The individual stocks that Beishui Net bought the most were Bank of China (03988), Tencent (00700), and China Construction Bank (00939). The individual stocks sold the most by Beishui Net were Yingfu Fund (02800), Hang Seng China Enterprise (02828), and CNOOC (00883).

Hong Kong Stock Connect (Shanghai) actively traded stocks

Hong Kong Stock Connect (Shenzhen) actively traded stocks

Beishui raised domestic bank stocks throughout the day, and Bank of China (03988), China Construction Bank (00939), and Industrial and Commercial Bank (01398) received net purchases of HK$2,223 million, $568 million, and HK$370 million respectively. According to the news, Lyon said earlier that if the Hong Kong Stock Connect dividend tax relief is implemented, he believes the dividend yield gap between A shares and H shares will narrow. H-share bank shares 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. J.P. Morgan believes 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.

Tencent (00700) received a net purchase of HK$1,139 million. According to the news, Bank of America Securities published a report saying that Tencent's adjusted net profit for the first quarter rose 54% year-on-year to 50.3 billion yuan, far higher than the market's forecast of 43 billion yuan. Thanks to faster gross profit growth and reduced operating expenses, gross margin improved to 53%, higher than 50% of market forecasts. Gross profit increased 23% year-on-year, far faster than revenue growth, benefiting from rapid growth in high-margin revenue streams, including video account ads, WeChat search ads, applet game platform service fees, wealth management service revenue, e-commerce technology service fees, and cost efficiency improvements in long video and cloud businesses.

Pharmaceutical Biotech (02269) received a net purchase of HK$17.47 million. According to the news, the new version of the US Biosafety Act (H.R. 8333) has ushered in the latest developments. The new version of the law requires that the exemptions of the companies involved in the existing contract/product be extended to January 1, 2032, that is, US companies are required to end cooperation with companies covered by the Act before 2032, which means that related companies will be given an 8-year buffer period for their business in the US. For the companies involved, this means they have a longer period of time to adapt to the new policy environment and actively adjust their own business structures.

China's Shenhua (01088) had a net sale of HK$132 million. According to the news, China's Shenhua Public Corporation produced 27.5 million tons of commercial coal in April, up 5.4% year on year; coal sales volume was 37 million tons, up 1.1% year on year. In the first 4 months, the cumulative production of commercial coal was 108.8 million tons, up 2.4% year on year; cumulative coal sales volume was 154 million tons, up 6.9% year on year. According to reports, coal production in the Shanxi region dropped significantly in the first 4 months of this year, and the profitability of some listed companies in the coal industry in Shanxi declined markedly. Meanwhile, under the annual coal production capacity task in Shanxi Province, the industry expects coal production in Shanxi Province to increase starting in May.

Ideal Automobile-W (02015) had a net sale of HK$278 million. According to the news, according to the 21st Century Economic Report, after the May 1st holiday, Ideal Internal is carrying out a new round of company-wide personnel optimization, with an overall optimization ratio of over 18%. Furthermore, on May 15, Beijing lawyer Hao Junbo published an article stating that investors have sued Ideal Auto and some executive securities fraud in the US court, believing that Ideal Auto exaggerates demand in the MEGA market and caused the stock price to plummet. He released information to publicly solicit investors to participate in a free class action lawsuit.

Beishui Capital sold Hong Kong stock ETFs, while Yingfu Fund (02800) and Hang Seng China (02828) had net sales of HK$1,773 million and HK$533 million respectively. According to the news, CITIC Construction Investment Securities said that recently the focus of foreign capital allocation in the Asia-Pacific region has shifted back from Japan to Hong Kong stocks, and the liquidity of Hong Kong stocks has improved dramatically. In terms of domestic investment, driven by favorable policies and a high dividend market, southbound capital has recently increased dramatically, further consolidating the upward trend of Hong Kong stocks. Societe Generale Securities pointed out that the Hong Kong stock market is expected to spiral up this year, and there may be fluctuations in June or July after the sharp rise. The bear market mentality formed in the past few years has made it impossible to improve risk appetite in Hong Kong stocks overnight.

In addition, China Mobile (00941) and CNOOC (00883) had net sales of HK$162 million and HK$505 million respectively.