Beishui Trends | Beishui Trading's net purchase of 8.807 billion Yingfu Fund (02,800) received another HK$2.8 billion increase in positions and was sold off before Tencent (00700) results

The Zhitong Finance App learned that on May 13, the Hong Kong Stock Exchange had a net purchase of HK$8.807 billion, of which the Hong Kong Stock Connect (Shanghai) transaction made a net purchase of HK$5.132 billion and the Hong Kong Stock Connect (Shenzhen) transaction made a net purchase of HK$3,675 billion.

The individual stocks that Beishui Net bought the most were Yingfu Fund (02800), Industrial and Commercial Bank (01398), and China Shenhua (01088). The individual stocks sold the most by Beishui Net were Tencent (00700), CNOOC (00883), and Beijing Finance International (01468).

Hong Kong Stock Connect (Shanghai) active trading stocks

Hong Kong Stock Connect (Shenzhen) active trading stocks

Yingfu Fund (02800) received a net purchase of HK$2,863 million. According to the news, CICC released a research report saying that after the recent rapid rebound, the market has basically reached the first stage target point under our benchmark situation, which corresponds to around 19,000 points for the Hang Seng Index. Under an optimistic situation, if subsequent policies continue to work to increase profits by 10%, the market is expected to open up further space, corresponding to the Hang Seng Index of 22,000 points. Huatai Securities pointed out that in the short term, financial data for April may catalyze high dividends vs. Hengke's excess earnings. In the medium term, the internal and external macroeconomic environment, market value management demands of central and state-owned enterprises, and dynamic dividend rates are expected to increase, which together point to dividend assets in Hong Kong stocks or will continue to show allocation value.

Domestic bank stocks diverged, with ICBC (01398) receiving a net purchase of HK$451 million and CCB (00939) receiving a net sale of HK$27.03 million. According to the news, Lyon published a report stating that if the Hong Kong Stock Connect dividend tax relief rumor is implemented, it is believed that the dividend yield gap between A shares and H shares will narrow. H-share bank shares will be the main beneficiaries because dividend rates are very attractive, and state-owned banks with the highest dividend rates will benefit the most. Lyon is still optimistic about CCB, which has a large dividend ratio gap between A shares and H shares. The dividend gap between H shares and A shares is 2.7 percentage points; they are also all optimistic about ICBC. The spread between H shares and A shares is 2.1 percentage points.

China Shenhua (01088) received a net purchase of HK$109 million. According to the news, Everbright Securities recently pointed out that the performance of coal companies in 24Q1 was divided, leading coal companies had more stable profits, and dividend ratios were higher than the industry average, showing outstanding investment value. The net profit of listed coal companies in 2024 is calculated using the annualized net profit of 2024Q1 and calculated based on the 2023 dividend ratio. Currently, the average dividend rate of the coal sector is 5.4%, of which the average dividend rate for the thermal coal sector is 5.5%, and the average dividend rate for the coking coal sector is 4.6%.

Yao Ming Kangde (02359) received a net purchase of HK$49.71 million. According to the news, according to media reports, the US legislature has amended the “Act Restricting Medication Kant and Chinese Biotech Companies” to allow more time to sever ties between biotech companies. The bill will require US companies to end cooperation with these companies by 2032. Some industry insiders believe that 8 years is enough time for relevant companies to adapt, and the implementation of uncertainty can also have a positive impact on related companies. However, some market participants believe that this will make the bill more practical, and the long-term development pressure on the domestic pharmaceutical industry may increase.

Beijing Capital International (01468) surged more than 55% today, and Beishui Capital sold HK$82.18 million throughout the day. According to the news, Beijing Capital Finance announced that on April 23, the petitioner under the Hong Kong Liquidation Petition reached a settlement with the company and obtained a consent summons to seek an order to withdraw the Hong Kong Liquidation Petition based on the parties' agreement, including cancelling the hearing originally scheduled for May 17. Furthermore, the company was notified that the Hong Kong winding-up petition against the company had been withdrawn.

Tencent (00700) had a net sale of HK$480 million. According to the news, Tencent will announce the results tomorrow (May 14). Tianfeng Securities released a research report saying that the market already had relatively full expectations for Tencent's revenue growth in the first quarter. The bank expects game business growth to enter a recovery path starting in the second quarter, driving a recovery in revenue growth. Combined with changes in revenue structure, the gross profit margin will continue to increase, and the basis for continued profit growth is relatively solid. In the medium to long term, the company actively lays out the development of AI technology. The diversified product matrix corresponds to a broad range of potential application combinations, and technological progress may be an important growth multiplier in the medium to long term.

In addition, China Mobile (00941) and CNOOC (00883) had net sales of HK$5.05 million and HK$186 million respectively.