The Zhitong Finance App learned that on May 24, the Hong Kong Stock Exchange had a net purchase of HK$2,516 million, of which Hong Kong Stock Connect (Shanghai) had a net purchase of HK$1,612 million and the Hong Kong Stock Connect (Shenzhen) transaction made a net purchase of HK$905 million.
The individual stocks that Beishui Net bought the most were Bank of China (03988), Kang Fang Biotech (09926), and Xiaomi Group-W (01810). The individual stocks sold the most by Beishui Net were Tencent (00700), CNPC (00883), and Vanke (02202).
Hong Kong Stock Connect (Shanghai) actively traded stocks
Hong Kong Stock Connect (Shenzhen) actively traded stocks
Domestic bank stocks are now slightly divided. Bank of China (03988) and China Construction Bank (00939) received net purchases of HK$586 million and HK$257 million respectively, while Agricultural Bank (01288) had a net sale of HK$22.83 million. According to the news, Fitch Ratings said that the Chinese government's newly introduced real estate support policy is aimed at stabilizing housing demand and reducing surplus housing stock, but it may put additional pressure on banks' net interest spreads, but it is not expected to significantly reduce the quality of banks' assets. UBS, on the other hand, said it maintains a constructive view of the Bank of China because policy introduction seems to be accelerating; market valuations have taken into account negative catalysts and bear market prospects for Chinese banks; and attractive dividend rates can protect the downside.
Kang Fang Biotech (09926) was hit by market rumors today. Beishui's capital attracted funds due to dips, making a net purchase of HK$311 million throughout the day. According to the news, there are rumors in the market today that Kangfang Biotech AK112's clinical data for EGFR-TKI treated non-small cell lung cancer in China fell short of expectations. In response, people related to Kang Fang Biotech said that the HR for AK112's progression-free survival (PFS) disclosed by ASCO reached 0.46. This is the core data for evaluating clinical study results. The data results are excellent, and there are no claims that it falls short of expectations. Currently, the AK112-301 data has been accepted as an oral report at the 2024 ASCO Conference based on the excellent results, and will be published globally on June 1 according to the organizer's plan. Furthermore, on May 24, AK112 obtained approval from the National Drug Administration for marketing in combination with pemetrexed and carboplatin for the treatment of locally advanced or metastatic non-squamous non-small cell lung cancer (NSCLC) patients with positive EGFR gene mutations progressing after treatment with epidermal growth factor receptor (EGFR) tyrosine kinase inhibitors (TKI).
Petroleum stocks are also now divided. CNOOC (00883) received a net purchase of HK$262 million, while CNPC (00857) was net sold at HK$64.68 million. According to the news, the minutes of the May meeting of the Federal Reserve released hawkish signals, superimposed unexpected economic data, and continued to depress market confidence in interest rate cuts and suppress oil prices in US dollars. CITIC Construction Investment pointed out that looking forward to the future, the peak summer travel season in the US supports crude oil demand. OPEC+ member states, led by Saudi Arabia and Russia, agreed to extend the voluntary production reduction agreement by 2.2 million b/d until the end of June this year. Considering the recent drop in oil prices, OPEC+ may discuss continuing to delay the production reduction agreement at the June meeting. In summary, the crude oil supply and demand gap may widen again in the future, and oil prices are expected to stop falling and rise again.
Longyuan Electric Power (00916) received a net purchase of HK$97.61 million. According to the news, Citi released a research report saying that the average wind power price in Longyuan fell 5.6% year on year due to an increase in the market-based electricity price sales mix and more capacity combinations for affordable electricity generation. The further reduction in tariffs is expected to be limited this year, as annual sales tariffs have already been fixed; according to historical wind speed trends, its sales mix from North China is generally lower in the second to third quarter. As a result, the company believes that the average renewable energy price in 2024 will be similar to the first quarter.
Vanke Enterprise (02202) had a net sale of HK$40.19 million. According to the news, Fitch once again downgraded Vanke's rating, and the long-term foreign currency and local currency issuer default ratings were downgraded from “BB+” to “BB-”. The outlook is negative. According to Fitch, the rating downgrade reflects that Vanke's sales performance from the beginning of the year to date was weaker than expected, and the company's liquidity buffer declined. According to Fitch, the continued deterioration in sales has affected Vanke's non-bank financing channels, and the company will increasingly rely on cash on hand, asset disposal, and secured domestic bank financing to repay its large debts due in 2024 and 2025.
Additionally, Xiaomi Group-W (01810) received a net purchase of HK$293 million. Meanwhile, Tencent (00700) had a net sale of HK$228 million.