Northbound Capital Trends | Northbound capital net purchases amounted to 2.262 billion, increasing positions in CCB and other domestic bank stocks while continuing to sell Xiaomi Group
On May 13th, northbound capital net bought HKD 2.262 billion in the Hong Kong stock market, mainly flowing into China Construction Bank, Alibaba-W, and CNOOC, while Xiaomi Group faced selling pressure. The net purchase through the Hong Kong Stock Connect (Shanghai) was HKD 3.833 billion, while the net sale through the Hong Kong Stock Connect (Shenzhen) was HKD 1.572 billion. Analysis indicates that with policy support, bank performance is expected to stabilize and rebound, and Alibaba's financial report is about to be released, with positive market expectations
According to Zhitong Finance APP, on May 13th in the Hong Kong stock market, northbound capital had a net purchase of HKD 2.262 billion, with the Shanghai-Hong Kong Stock Connect seeing a net purchase of HKD 3.833 billion and the Shenzhen-Hong Kong Stock Connect experiencing a net sale of HKD 1.572 billion.
The stocks with the highest net purchases from northbound capital were China Construction Bank (00939), Alibaba-W (09988), and CNOOC (00883). The stocks with the highest net sales were Tencent (00700), SMIC (00981), and Xiaomi Group-W (01810).
Active trading stocks in Shanghai-Hong Kong Stock Connect
Active trading stocks in Shenzhen-Hong Kong Stock Connect
Northbound capital increased its holdings in domestic bank stocks. China Construction Bank (00939) and Industrial and Commercial Bank of China (01398) received net purchases of HKD 579 million and HKD 287 million, respectively. On the news front, the People's Bank of China announced a package of financial policy measures on May 7th. Kaiyuan Securities stated that under tariff disturbances, policy stability is mainly internal, and there is still room for reserve requirement ratio cuts and interest rate reductions, optimistic about the valuation recovery of banks under stable growth policies. It is expected that the banking industry's performance will remain stable in 2025, with revenue and net profit growth rates steadily rebounding. The focus remains on the sustainability of stable dividend strategies.
Alibaba-W (09988) received a net purchase of HKD 533 million. On the news front, Alibaba will announce its financial report on May 15th. Morgan Stanley predicts that Alibaba's quarterly adjusted EBITA will increase by 28% year-on-year to RMB 30.7 billion, benefiting from robust customer management revenue growth, better-than-expected cloud business profit margins, continued reduction of losses in loss-making businesses, and a low base effect. JP Morgan stated that the market may overlook the impact of Alibaba's sale of Intime and Sun Art on the non-GAAP net profit for the last fiscal quarter due to one-time disposal losses.
CNOOC (00883) received a net purchase of HKD 353 million. On the news front, CCB International previously published a research report stating that CNOOC's profit in the first quarter of this year decreased by 8% year-on-year to RMB 36.6 billion, which was higher than the bank's expectations, mainly due to higher-than-expected realized oil prices and lower-than-expected costs. The bank 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 lead to significant fluctuations in oil prices Xiaomi Group-W (01810) experienced a net sell-off of HKD 149 million. According to reports from Yicai, several prospective owners of the SU7 Ultra believe that the high-priced optional carbon fiber dual air duct front hood has issues with false advertising. It was reported that a group of prospective SU7 Ultra owners has formed a rights protection group, with the number of people seeking a no-loss return exceeding 300. Notably, according to a post on the official WeChat account, Xiaomi Auto's delivery volume in April decreased by 3.4% month-on-month to 28,000 units, marking the first negative growth.
SMIC (00981) faced a net sell-off of HKD 227 million. In news, Nomura released a research report stating that local demand for SMIC was strong in the first quarter, but the average selling price (ASP) was temporarily affected. The report indicated that due to production interruptions in the first quarter, revenue increased by 2% quarter-on-quarter, which was below the guidance target. Management expects the impact of equipment adjustments to continue into the second quarter and anticipates a revenue decline of 4-6% during that period. The bank expects this temporary factor may lead to a 10% decrease in the average selling price of 12-inch wafers in the first quarter compared to the previous quarter, and expects a 6% decline in the average selling price in the second quarter compared to the previous quarter, followed by a rebound in the second half of 2025.
In addition, China Mobile (00941) and UBTECH (09880) received net purchases of HKD 320 million and HKD 252 million, respectively. Meanwhile, BYD Electronics (00285) and Tencent (00700) experienced net sell-offs of HKD 8.67 million and HKD 663 million, respectively
