Northbound Capital Trends | Northbound capital net sold HKD 7.866 billion, domestic investors increased their holdings in CCB by over HKD 600 million, and sold nearly HKD 2.8 billion of Tencent throughout the day

According to Zhitong Finance APP, on May 7th in the Hong Kong stock market, northbound capital had a net sell of HKD 7.866 billion, with the Shanghai-Hong Kong Stock Connect having a net sell of HKD 4.178 billion and the Shenzhen-Hong Kong Stock Connect having a net sell of HKD 3.688 billion.

The stocks with the highest net purchases from northbound capital are China Construction Bank (00939), Meituan-W (03690), and CNOOC (00883). The stocks with the highest net sells are Tencent (00700), Xiaomi Group-W (01810), and Alibaba-W (09988).

Active trading stocks in Shanghai-Hong Kong Stock Connect

Active trading stocks in Shenzhen-Hong Kong Stock Connect

China Construction Bank (00939) received a net purchase of HKD 668 million. In terms of news, the central bank today launched 10 monetary policy measures to promote high-quality economic development. These include a 0.5 percentage point reduction in the reserve requirement ratio, which is expected to provide approximately HKD 1 trillion in long-term liquidity to the market; a 0.1 percentage point reduction in the policy interest rate, meaning the 7-day reverse repurchase operation rate will be lowered from the current 1.5% to 1.4%, which is expected to lead to a simultaneous decline of about 0.1 percentage points in the Loan Prime Rate (LPR).

Meituan-W (03690) received a net purchase of HKD 300 million. In terms of news, CITIC Securities previously stated that reviewing the past positive collisions in the takeaway market, subsidies have a significant short-term effect on order growth, 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 firm expects market sentiment disturbances to exist but have stabilized. 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.

CNOOC (00883) received a net purchase of HKD 213 million. In terms of news, Bank of China International published a research report indicating that CNOOC's profit in the first quarter of this year decreased by 8% year-on-year to HKD 36.6 billion, which is better than the firm's expectations, mainly due to higher-than-expected realized oil prices and lower-than-expected costs. The firm indicated that if oil prices remain at current levels, the company's profit in the second quarter of this year will decline quarter-on-quarter. However, Trump's unpredictable attitude towards his tariff war and his strategy towards Iran could cause significant fluctuations in oil prices Xiaomi Group-W (01810) experienced a net sell-off of HKD 2.026 billion. In terms of news, Xiaomi Auto has changed the promotional page for new car orders, 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 on intelligent driving, emphasizing that exaggeration in promotion is not allowed and that functional boundaries must be clearly defined. Previously, an accident involving the Xiaomi SU7 on the Anhui highway attracted attention.

Alibaba-W (09988) and Tencent (00700) faced net sell-offs of HKD 955 million and HKD 2.78 billion, respectively. In terms of news, the central bank's monetary policy efforts combined with high-level talks between China and the U.S. on economic and trade issues led to a collective high opening for tech stocks today, which then declined throughout the day. CMB International stated that the maximum emotional impact caused by tariffs has passed. However, caution is still needed regarding the ongoing disturbances in the capital market due to the fluctuations in Trump's policies, which may lead to market sentiment swings. It is expected that high volatility in the capital market will continue for some time, and risk aversion sentiment may remain at relatively high levels.

In addition, Hongye Futures (03678) saw a net purchase of HKD 27.74 million, while Shandong Molong (00568), Innovent Biologics (01801), and SMIC (00981) faced net sell-offs of HKD 19.73 million, HKD 30.93 million, and HKD 591 million, respectively