According to the Zhitong Finance and Economics APP, on September 12th, in the Hong Kong stock market, Beishui (Northbound funds) had a net purchase of HKD 3.075 billion. Among them, the Shanghai-Hong Kong Stock Connect had a net purchase of HKD 1.216 billion, and the Shenzhen-Hong Kong Stock Connect had a net purchase of HKD 1.859 billion.
The stocks with the highest net purchases by Beishui were Alibaba-W (09988), E Fund Management (02800), and Tencent (00700). The stocks with the highest net sales by Beishui were Hong Kong Exchanges and Clearing (00388), China Mobile (00941), and Li Auto-W (02015).
Active trading stocks in the Shanghai-Hong Kong Stock Connect
Active trading stocks in the Shenzhen-Hong Kong Stock Connect
Alibaba-W (09988) received a net purchase of HKD 3.512 billion. On the news front, JP Morgan pointed out that Alibaba was officially included in the Hong Kong Stock Connect on September 10th. Although it is expected that the full impact of Alibaba's inclusion in the Hong Kong Stock Connect and the inflow of southbound funds will take several months to show, it is believed that Alibaba, based on its fundamental development in domestic e-commerce, will become a key stock price driver in the next 6 to 12 months. In addition, the bank expects that the traffic, gross merchandise volume (GMV), and monetization of Taobao and Tmall will continue to improve over the next few quarters, with technological catalysts emerging.
E Fund Management (02800) received a net purchase of HKD 0.464 billion. On the news front, Zhongtai International stated that the current market has entered a period of observing economic data, with no clear investment theme other than trading the Fed rate cut. CICC believes that the short-term uncertainties in the domestic and international environments may continue to bring volatility, and still believes that the resilience of Hong Kong stocks is greater than that of A-shares. Guoyuan International pointed out that as the overall domestic economy is still in a deleveraging period, the long-term repair of Hong Kong stock valuations still requires more domestic policy support and improvement in economic fundamentals as a support.
Ping An Insurance (02318) received a net purchase of HKD 0.151 billion. On the news front, Shenwan Hongyuan released a research report stating that the performance of the insurance sector in the first half of the year exceeded expectations. It is optimistic about the improvement in the stage of interest spread risk and the positive catalysis of some institutions' third-quarter performance exceeding expectations for the valuation of the insurance sector. The expected decline in the cost of liabilities is expected to alleviate interest spread risk and drive up NBVM; at the same time, it is recommended to focus on the full-channel implementation of &#34;reporting and banking integration&#34; to drive up NBVM and improve new business in the banking and insurance channels, positively impacting the liability side
Under the significant pressure on profits in Q3 last year, some insurance companies are expected to exceed expectations in 3Q24.
China Shenhua (01088) received a net purchase of HKD 19.2 million. CCB International released a research report stating that with coal inventories falling to the lowest level in nearly six months, coupled with the recovery in demand from non-power customers, domestic thermal coal prices are expected to strengthen in the near term. As steel mills increase production and increase coking coal inventories before the Lunar New Year, domestic coking coal prices may even have started to rise. CCB International pointed out that after the recent decline in stock prices, most coal stocks seem quite attractive.
Industrial and Commercial Bank of China (01398) suffered a net sale of HKD 68.71 million. On the news front, CMB Securities released a research report stating that the adjustment of existing mortgage rates is expected to have a limited impact on bank interest margins. Morgan Stanley pointed out that although the LPR reduction may put pressure on the interest income of the Chinese banking industry, the interest costs paid by banks to depositors are also decreasing, which helps alleviate the pressure on net interest margins.
Hong Kong Exchanges and Clearing Limited (00388) suffered a net sale of HKD 634 million. On the news front, Morgan Stanley recently stated that it has lowered its earnings per share forecasts for HKEX in 2024, 2025, and 2026 by 0.9%, 1.8%, and 2.6% respectively. In terms of market valuation, the daily average turnover forecasts for 2024, 2025, and 2026 have been reduced by 6.6%, 2.4%, and 2.4% respectively. Guotai Junan Securities pointed out that with the expectation of a rate cut by the Federal Reserve in September, on the one hand, overseas liquidity conditions have eased, and on the other hand, the rate cut in the United States also provides some room for maneuver for domestic monetary policy. The fundamentals of the domestic economy are expected to stabilize, and the trading activity in the Hong Kong stock market is expected to increase, with the year-on-year growth rate of HKEX's Average Daily Turnover expected to turn positive.
In addition, Tencent (00700), Xiaomi Corporation-W (01810), and CNOOC (00883) received net purchases of HKD 162 million, 99.78 million, and 23.05 million respectively. While China Mobile (00941) and Li Auto-W (02015) suffered net sales of HKD 113 million and HKD 109 million respectively

On September 12th, Beishui net bought HKD 3.075 billion in the Hong Kong stock market, with Alibaba receiving a net purchase of HKD 3.512 billion, while continuing to sell Hong Kong Exchanges and Clearing Limited. JP Morgan pointed out that Alibaba's inclusion in the Hong Kong Stock Connect will be a stock price driver in the next 6 to 12 months. Yingfu Fund and Ping An Insurance (Group) Company of China, Ltd. also received net purchases of HKD 0.464 billion and HKD 0.151 billion respectively. During the observation period, the market believes that the resilience of the Hong Kong stock market is greater than that of the A-share market

- In the Hong Kong stock market on September 12, mainland investors (Northbound trading) net bought HK$30.75 billion, with HK Stock Connect (Shanghai) at HK$12.16 billion and HK Stock Connect (Shenzhen) at HK$18.59 billion. Top buys included Alibaba-W (09988), GF Fund (02800), and Tencent (00700), while top sells were HKEX (00388), China Mobile (00941), and Li Auto-W (02015).
- Morgan Stanley noted Alibaba's inclusion in the Stock Connect on September 10, expecting its impact to unfold gradually over 6 to 12 months, driven by domestic e-commerce growth. Meanwhile, China Ping An (02318) saw net buying of HK$1.51 billion, with positive outlooks on the insurance sector's performance and valuation catalysts.
- China Shenhua (01088) received net buying of HK$19.2 million, with forecasts of strengthening domestic coal prices due to low inventory levels and rising demand, potentially benefiting coal stocks. Industrial and Commercial Bank of China (01398) faced net selling of HK$68.71 million amid limited impact from mortgage rate adjustments on banks' interest margins.

Zhitong

BABA-W

Ping An

PING AN

PING AN-R

HKEX

HKEX-R

Ping An Insurance

BABA-WR

Alibaba

Hong Kong Exchanges and Clearing (HKEX)

Beishui Movement | Beishui's net purchase amount is 3.075 billion, Beishui further buys Alibaba for over 3.5 billion Hong Kong dollars and continues to sell Hong Kong Exchanges and Clearing Limited