North Water Trends | Beishui's net purchase of 12.904 billion Tencent (00700) was included in the CMC list, and Beishui raised more than HK$14 billion at low prices

The Zhitong Finance App learned that on January 7, the Hong Kong Stock Exchange had a net purchase of HK$12.904 billion, of which Hong Kong Stock Connect (Shanghai) had a net purchase of HK$13.279 billion and the Hong Kong Stock Connect (Shenzhen) transaction had a net sale of HK$375 million.

The individual stocks that Beishui Net bought the most were Tencent (00700), SMIC (00981), and China Mobile (00941). The individual stocks sold the most by Beishui Net were Yingfu Fund (02800), Hang Seng China Enterprise (02828), and Alibaba-W (09988).

Hong Kong Stock Connect (Shanghai) active trading stocks

Hong Kong Stock Connect (Shenzhen) active trading stocks

Tencent (00700) received a net purchase of HK$13.994 billion. According to the news, Tencent was added to the CMC list by the US Department of Defense. Tencent emphasized that it has no impact on business and will cooperate with the US Department of Defense to resolve any misunderstandings. Morningstar believes that Tencent will be removed from the list after a good chance. The bank pointed out that since listing does not result in specific sanctions or direct penalties, it is expected that it may only cause reputational damage and may discourage other companies from potential cooperation. The bank expects that Tencent's cash flow will not be substantially affected by this incident.

SMIC (00981) received a net purchase of HK$730 million. On the news, Guotai Junan said that the localization of semiconductors is imperative, and the importance of advanced manufacturing processes is increasing. At present, advanced manufacturing is one of the necessities of high-end chip cards in China, and there is still a gap between 7nm and the international advanced level of manufacturing processes. As a professional foundry company with the most advanced technology, the largest scale, and the most complete supporting services in mainland China, SMIC has a leading advanced process production line layout, which is expected to benefit deeply from autonomy and control, and is recommended.

China Mobile (00941) received a net purchase of HK$442 million. According to the news, GF Securities pointed out that the fundamentals of operators have basically bottomed out in 2024 and are expected to rise steadily in 25. Continue to recommend investment opportunities for low-volatility dividend asset operators in the context of abundant liquidity. China Galaxy Securities said that demand for communication equipment, which is the foundation of the digital economy's computing power infrastructure, is expected to usher in high growth, and related sectors may usher in greater opportunities.

Alibaba-W (09988) had a net sale of HK$607 million. According to the news, Everbright Securities pointed out that Alibaba's sale of Yintai Department Store and Gaoxin Retail may have a certain negative impact on the company's investment income in the short term, but in the long run, it is beneficial to the healthy development of the company's core business. Goldman Sachs said that although asset sales may cause accounting disposal losses when the transaction is completed, the sale of these two key offline retail businesses is in line with the company's continued focus on e-commerce business. At the same time, it believes these transactions can generate revenue for further shareholder return policies, including repurchases and dividends.

Beishui Capital sold Hong Kong stock ETFs, while Yingfu Fund (02800) and Hang Seng China (02828) had net sales of HK$3.22 billion and HK$860 million respectively. According to the news, Sino-Thai International believes that the Hong Kong stock market is likely to maintain a volatile pattern in the short term. Higher US dollar interest rates, a strong US dollar index, and a weak renminbi put some pressure on Hong Kong stocks, but marginal improvements in fundamentals and policy expectations also provide some support. Guotai Jun An pointed out that overall, the profit side of Hong Kong stocks will continue to improve slightly in 2025.

Additionally, Xiaomi Group-W (01810) received a net purchase of HK$129 million. Meanwhile, CNOOC (00883) had a net sale of HK$34.79 million.