Northbound Capital Trends | Northbound capital net purchases amounted to HKD 13.475 billion, continuing to increase positions in Hong Kong stock ETFs, with over HKD 3.4 billion allocated to Meituan throughout the day

According to Zhitong Finance APP, on May 6th in the Hong Kong stock market, northbound capital had a net purchase of HKD 13.475 billion, with the Shanghai-Hong Kong Stock Connect having a net purchase of HKD 7.69 billion and the Shenzhen-Hong Kong Stock Connect having a net purchase of HKD 5.785 billion.

The stocks with the highest net purchases from northbound capital were Tracker Fund of Hong Kong (02800), Meituan-W (03690), and Hang Seng China Enterprises (02828). The stocks with the highest net sales were Xiaomi Group-W (01810), Tencent (00700), and CNOOC (00883).

Active trading stocks in Shanghai-Hong Kong Stock Connect

Active trading stocks in Shenzhen-Hong Kong Stock Connect

Northbound capital continues to increase its holdings in Hong Kong stock ETFs, with Tracker Fund of Hong Kong (02800) and Hang Seng China Enterprises (02828) receiving net purchases of HKD 4.551 billion and HKD 2.311 billion, respectively. On the news front, China Merchants Jinling International stated that after adjustments, the subsequent trend of the Hong Kong stock market shows resilience, mainly due to support from multiple aspects. China Merchants Jinling International judges that the maximum emotional impact caused by tariffs has passed, and under the easing of overseas uncertainties, major global equity markets have generally achieved recovery. The sentiment in the Hong Kong stock market has also seen positive improvement, and previously damaged sectors are expected to achieve structural repair. However, it is still necessary to be vigilant about the repeated disturbances in the capital market caused by Trump’s policies, which may lead to fluctuations in market sentiment. It is expected that the capital market will maintain high volatility for some time, and future risk aversion sentiment may continue to remain at relatively high levels.

Meituan-W (03690) received a net purchase of HKD 3.456 billion. On the news front, CITIC Securities stated that reviewing the past positive collisions in the takeaway market, subsidies have a significant short-term effect on the growth of order volume, but they are not the decisive factor in determining the outcome of competition. Systematic variables such as delivery efficiency, merchant supply, user repurchase, and frequency are more core. In addition, the bank expects that market sentiment disturbances exist but have tended to stabilize. From a relatively long-term perspective, it is expected that the competitive landscape of the takeaway industry will remain stable, and the market ecology will develop more healthily, with platform value expected to be released in the long term.

Alibaba-W (09988) received a net purchase of HKD 1.503 billion. On the news front, according to Caixin citing sources, Ant Group plans to separately list its overseas segment Ant International, registered in Singapore, in Hong Kong and is currently communicating with regulatory authorities about the possibility of listing Reports indicate that Ant International's revenue accounts for about 20% of Ant Group. In addition, Ant Holdings' wholly-owned subsidiary Shanghai Yunjin has initiated a tender offer to Hong Kong Yau Ching Securities through its subsidiary. Shenwan Hongyuan pointed out that this acquisition by Ant aims to fill the licensing gap of Yunfeng Financial.

China Construction Bank (00939) received a net purchase of HKD 524 million. On the news front, BOC International released a report indicating that CCB's profit declined in the first quarter. Net profit fell by 4% year-on-year, while the net profit for the entire year of 2024 is expected to grow by 0.9% year-on-year. Due to a narrowing net interest margin, CCB's net interest income is expected to decline by 5.2% year-on-year in the first quarter of 2025. Asset quality improved during the quarter. The bank stated that CCB is currently undervalued.

Shandong Molong (00568) received a net purchase of HKD 50.17 million. On the news front, the Shenzhen Stock Exchange announced that due to the removal of other risk warnings for Shandong Molong's A-shares listed on the Shenzhen Stock Exchange, Shandong Molong will be included in the Hong Kong Stock Connect securities list under the Shenzhen-Hong Kong Stock Connect, effective from May 6, 2025. The announcement stated that the company's A-share stock will have the other risk warning removed starting from the market opening on May 6, 2025; the stock abbreviation will change from "ST Molong" to "Shandong Molong."

CNOOC (00883) faced a net sell-off of HKD 309 million. On the news front, the OPEC+ group of eight producers led by Saudi Arabia reached an agreement on Saturday to increase production by 411,000 barrels per day in June. This increase is nearly three times Goldman Sachs' original forecast of 140,000 barrels per day. OPEC+ insiders indicated that if member countries do not strictly adhere to production quotas, the voluntary production cut agreement may be completely lifted by the end of October.

Xiaomi Group-W (01810) faced a net sell-off of HKD 491 million. On the news front, Xiaomi Auto has changed its new car ordering promotional page, replacing "Intelligent Driving" with "Assisted Driving," involving multiple models of the SU7. This change may be related to the Ministry of Industry and Information Technology's meeting requirements regarding intelligent driving, emphasizing that exaggerated promotions are not allowed and that functional boundaries must be clearly defined. Previously, an accident involving a Xiaomi SU7 on the Anhui highway raised concerns.

In addition, Kingsoft Cloud (03896) received a net purchase of HKD 47.56 million. Meanwhile, Tencent (00700) and SMIC (00981) faced net sell-offs of HKD 362 million and HKD 266 million, respectively