BOCI Recommends Focus on Active Stocks for Southbound Trading

May saw a net inflow of RMB64.5 billion from southbound trading, lower than in March and April.
Southbound trading has been crucial in stabilizing Hong Kong’s stock market amid geopolitical risks.
BOCI expects strong demand from Mainland investors for Hong Kong stocks to continue due to attractive valuations and high dividend yields.
The volume of southbound trading is projected to grow from RMB289.4 billion in 2023 to RMB600 billion for the full year.
Key sectors to attract more attention include banking, telecom, internet, automobile manufacturing, materials, and energy.
BOCI’s recommended stocks rated Buy for southbound trading: $TENCENT(00700.HK)$ , $MEITUAN-W(03690.HK)$ , $KUAISHOU-W(01024.HK)$ , $CHINA MOBILE(00941.HK)$ , $CNOOC(00883.HK)$ , $CHINA SHENHUA(01088.HK)$ , $PETROCHINA(00857.HK)$ , $XIAOMI-W(01810.HK)$ , $CCB(00939.HK)$ , $ICBC(01398.HK)$ .