The Zhitong Finance App learned that on March 21, the Hong Kong Stock Exchange had a net purchase of HK$4.772 billion, of which Hong Kong Stock Connect (Shanghai) had a net purchase of HK$1,628 billion, and the Hong Kong Stock Connect (Shenzhen) transaction had a net purchase of HK$3.144 billion.

The individual stocks that Beishui Net bought the most were Tencent (00700), Bank of China (03988), and Xiaopeng Automobile-W (09868). The individual stocks sold the most by Beishui Net were ICBC (01398), CNOOC (00883), and China Construction Bank (00939).

Hong Kong Stock Connect (Shanghai) actively traded stocks

Hong Kong Stock Connect (Shenzhen) actively traded stocks

Tencent (00700) received a net purchase of HK$1,624 million. According to the news, Tencent announced its results. Tencent's total revenue in the fourth quarter increased 7% year on year, and gross margin and adjusted net margin increased 25.5% and 43.7% year on year, respectively, thanks to continuous efforts to grow high profit revenue streams in three areas: mini games, video ads, and live e-commerce. Management is confident that mainland games will grow in the second quarter of 2024, benefiting from factors such as the release of new games. CMB International pointed out that Tencent's good business model supports it with sufficient room to further increase operating leverage, and its consumer internet business will drive sustainable profit growth. The company has sufficient cash flow to enhance shareholder returns. In the future, it plans to at least double the share repurchase scale from HK$49 billion in 2023 to over HK$100 billion in 2024 (accounting for about 4% of the current market value).

Domestic bank stocks continued to diverge. Bank of China (03988) received a net purchase of HK$557 million, while ICBC (01398) and CCB (00939) were net sold at HK$219 million and HK$29.33 million respectively. According to the news, CICC published a report stating that overall, credit and social finance growth in January was affected by Spring Festival factors and the pace of credit investment over the same period last year. Credit fluctuations smoothed out in the first two months of the merger and considering the differences in the pace of investment from last year to this year. However, judging from credit demand, the overall demand from residents in fields such as home purchases, real estate investment, and private investment has yet to recover. J.P. Morgan previously stated that China's banking sector will still be able to maintain stable dividends per share in the 2024 and 2025 fiscal years.

Xiaopeng Motor-W (09868) received a net purchase of HK$550 million. According to the news, according to Form 144 submitted by Xiaopeng Motor in the US Securities and Exchange Commission, Taobao China Holdings Co., Ltd., a subsidiary of Alibaba, plans to sell 33 million copies of Xiaopeng Motor ADS, with a total value of about US$314 million. In addition, Open Source Securities pointed out that in the short term, the company will benefit from the overall seasonal recovery of the automobile industry, the stabilization of its own sales system, and the launch of the new car product cycle, which is expected to drive the company's sales trend recovery in March and beyond. The release of cost reduction benefits in the supply chain reserves more flexible space for the company's pricing and marketing, and the release of the 2024H2 scale effect is expected to further drive an improvement in gross margin.

CNPC (00857) received a net purchase of HK$290 million, while CNOOC (00883) had a net sale of HK$145 million. According to the news, Citi published a report indicating that international oil prices continued to be high in the first quarter of this year, and it is expected that the oil group and partner countries (OPEC+) will maintain production cuts until December of this year. However, it is still recommended that oil producers hedge early on output in 2025 and watch out for a sharp drop in oil prices. The bank expects oil to drop to 55 US dollars per barrel by the end of next year.

China Shenhua (01088) received a net purchase of HK$174 million. In terms of information, China's Shenhua will release the results tomorrow (March 22). The company previously issued an announcement. The company expects to achieve net profit attributable to the Company's shareholders of 57.8 billion yuan to 60.8 billion yuan in 2023. Among them, net profit for the fourth quarter was 9.53 billion yuan to 12.53 billion yuan, down 9.2% year on year to 19.4%. The Shanxi Securities Research Report pointed out that in anticipation of a contraction in supply, coal prices have some support. If the demand side improves in the future, coal prices are expected to rebound steadily.

Kangfang Biotech (09926) received a net purchase of HK$141 million. According to the news, CICC pointed out that Kang Fang Biotech had revenue of 4,526 billion yuan last year and recorded a net profit of 2,028 billion yuan. Both beat this forecast, mainly because the company cooperated with Summit Therapeutics to confirm that revenue was higher than predicted. According to the report published by Citigroup, the market is concerned about the third phase of data released by AK112-303 in the second quarter of Kangfang Biotech. The drug has made optimistic progress in the second phase of the study, and it is believed that it is expected to achieve positive survival without worsening (PFS) results. The bank expects the company to obtain approval for three drugs this year, including AK102, AK101 and AK112.

China Mobile (00941) received a net purchase of HK$21.54 million. Jefferies pointed out that the market is concerned about the dividend and share repurchase policies to be announced by the three major Chinese telecommunications companies, and believes that the three major telecommunications stocks are “low price growth stocks” because they all have less than double the price-earnings growth rate (PEG) and attractive dividend yield. Jefferies believes that the State Assets Administration Commission encourages central enterprises to repurchase shares and includes market value as performance evaluation indicators for senior management. China Mobile has set a good example, and it is expected that China Telecom and China Unicom will also consider stock repurchases.

In addition, Kuaishou-W (01024), Xiaomi Group-W (01810), and Meituan-W (03690) received net purchases of HK$139 million, $123 million, and HK$79.33 million respectively.