Northbound Capital Trends | Northbound capital recorded a net sell of HKD 221 million, continuing to aggressively accumulate China Construction Bank while selling over HKD 2.3 billion of Tencent

According to Zhitong Finance APP, on May 15th in the Hong Kong stock market, northbound capital had a net sell of HKD 221 million, with the Shanghai-Hong Kong Stock Connect having a net buy of HKD 1.963 billion and the Shenzhen-Hong Kong Stock Connect having a net sell of HKD 2.184 billion.

The stocks with the highest net buy from northbound capital were China Construction Bank (00939), China Mobile (00941), and Li Auto-W (02015). The stocks with the highest net sell were Tencent (00700), Semiconductor Manufacturing International Corporation (00981), and Agricultural Bank of China (01288).

Active stocks in Shanghai-Hong Kong Stock Connect

Active stocks in Shenzhen-Hong Kong Stock Connect

The banking sector showed divergence, with China Construction Bank (00939) receiving a net buy of HKD 977 million, while Agricultural Bank of China (01288) faced a net sell of HKD 88.68 million. In terms of news, Huachuang Securities previously stated that market style factors, combined with tariff disturbances, have led to overall volatility in dividend-related assets. However, in a low-interest-rate environment, the stability of bank profits and dividends remains prominent, and the logic for medium to long-term capital entering the market has not changed. Banks with high dividend yields and asset quality with a high safety margin still have absolute returns, and it is recommended to pay attention to their cost-performance ratio.

Li Auto-W (02015) received a net buy of HKD 113 million. In terms of news, Daiwa stated that after communicating with the management of Li Auto recently, they have re-evaluated their valuation model and remain optimistic about Li Auto's long-term growth in model upgrades and overseas expansion. Li Auto plans to launch a new pure electric SUV i8 between July and August this year, and may launch the i6 by the end of the year, with prices ranging from 200,000 to 400,000 yuan. Daiwa expects sales to gradually recover throughout the year.

Weimob Group (02013) received a net buy of HKD 113 million. In terms of news, Tencent released a letter to all employees announcing adjustments to the organizational structure of the WeChat business group: establishing an e-commerce product department responsible for exploring transaction models within WeChat, accelerating the development of transaction infrastructure and ecosystem, and operating new transaction models on WeChat. Although Tencent's president, Liu Chiping, stated that the WeChat e-commerce team operates independently and should not be over-interpreted, the market still anticipates an acceleration in WeChat commercialization. According to previous financial reports, Weimob has provided marketing services for over 70% of the annual influencers on WeChat's video accounts, and in live broadcasts where GMV exceeded 20 million yuan, about 60% of the sessions had deep participation from Weimob Xiaomi Group-W (01810) received a net purchase of HKD 98.23 million. According to a report from Deutsche Bank analysts, as Xiaomi Group begins to increase more automotive-related advertisements and its SUV model YU7 is about to debut, the company's new orders may start to increase from late May. The recent continuous decline in Xiaomi Group's orders has raised investor concerns about its automotive business capabilities. However, Deutsche Bank stated that since these factors are mostly short-term or temporary, Xiaomi Group's new order flow may begin to increase from late May.

Smoore International (06969) received a net purchase of HKD 56.42 million. It was reported that the U.S. Customs and Border Protection recently conducted large-scale inspections of e-cigarette products at the Chicago port, intercepting a significant volume. Guojin Securities pointed out that the U.S. regulation of illegal vaping e-cigarettes has significantly tightened, and the trend of expanding the compliant market in the U.S. remains, emphasizing opportunities for compliant brand manufacturers and the growth of the industry chain; combined with the previous situation of Philip Morris in Q1, the overall development trend of the HNB industry remains favorable.

Alibaba-W (09988) faced a net sell of HKD 50.45 million. It was reported that Alibaba released its performance after hours, with fourth-quarter revenue of RMB 236.45 billion, slightly below the market estimate of RMB 237.91 billion. The adjusted earnings per ADS for the fourth quarter were RMB 12.52. Driven by strong AI demand, Alibaba Cloud's quarterly revenue growth accelerated to 18%, with AI-related product revenue achieving triple-digit growth for seven consecutive quarters.

Tencent (00700) faced a net sell of HKD 2.359 billion. According to a report from Morgan Stanley, Tencent Holdings' first-quarter performance exceeded expectations across the board, with revenue increasing by 13% year-on-year, surpassing market expectations by 3%. Tencent's first-quarter Non-IFRS net profit rose by 22%, with Morgan Stanley indicating it exceeded market expectations by 4%. Citigroup published a research report stating that although the pace of AI investment may affect Tencent's profit and revenue growth rate, Citigroup believes that negative operating leverage will not occur.

In addition, China Mobile (00941) and China National Offshore Oil Corporation (00883) received net purchases of HKD 666 million and HKD 90.28 million, respectively. Meanwhile, Semiconductor Manufacturing International Corporation (00981) faced a net sell of HKD 301 million