According to the Zhongtong Finance app, Beishui had a net inflow of 0.171 billion Hong Kong dollars in transactions in the Hong Kong stock market on July 12th, with a net outflow of 0.224 billion Hong Kong dollars in the Hong Kong Stock Connect (Shanghai) and a net inflow of 0.395 billion Hong Kong dollars in the Hong Kong Stock Connect (Shenzhen) transactions.

The top three stocks with the highest net buying by Beishui are Industrial and Commercial Bank of China (01398), Xiaomi Group-W (01810), and Sunny Optical Technology (02382). The top three stocks with the highest net selling by Beishui are CNOOC (00883), Tencent (00700), and COSCO Shipping Holdings (01919).

Active trading stocks for Hong Kong stock connect (Shanghai).

Active trading stocks for Hong Kong stock connect (Shenzhen).

Industrial and Commercial Bank of China (01398) received a net inflow of 0.494 billion Hong Kong dollars. According to Zhongjin, even though the interest rate decline has led to pressure on bank interest margins and profits, for bank investment, the stable dividend rate expectation still provides investment value. Zhongjin believes that in the short term, banks can hedge the pressure on interest spreads through asset-liability structure adjustment and policy guidance to lower debt cost. The market expects that the net income and dividend expectations of banks listed in 2024 are still stable. The profit growth rate is also more resilient compared to other industries.

Sunny Optical (02382) received a net inflow of 13.85 million Hong Kong dollars. According to Goldman Sachs, the shipments of mobile phone lenses, mobile phone camera modules, and car lens modules by Sunny Optical last month were roughly in line with expectations. Citic Lyon pointed out that Sunny Optical Technology's performance in the first half of this year was robust. The shipments of key mobile phone and car products were stable. More importantly, the product structure and gross margin of its highly profitable mobile phone camera module business have improved. The bank expects net profit for the first half of the year to be 1.03 billion yuan.

China Resources Power (00836) saw a net outflow of 76.92 million Hong Kong dollars. According to Guotai Junan, affected by the crowding-out effect of clean energy such as hydropower, the utilization rate of thermal power is expected to decline in the second quarter; the domestic spot coal price in the second quarter has been on a downward trend, and the overall long-term contract coal price has remained stable. Considering the impact of lower thermal power utilization rate month-on-month, the increase in coal consumption by power plants after the heating season and seasonal factors of other businesses, it is expected that the comprehensive profitability of various thermal power companies in the second quarter will be different. The difference in profitability depends mainly on regional electricity prices, utilization hours, and market coal exposure.

China Shenhua Energy (01088) saw a net outflow of 0.101 billion Hong Kong dollars. According to China Shenhua's announcement, based on preliminary estimates, the group's attributable net income for the period is expected to be RMB 31.8 billion to 33.8 billion, a year-on-year decrease of 8.4% to 13.8%. According to CCB International, the company's second-quarter profit can be estimated at RMB 14 billion to 16 billion, a season-on-season decline of 10% to 21%. In addition to the decrease in coal prices and power generation, the bank believes that the sales structure may change, and the proportion of self-produced coal sold under long-term contracts may increase.

COSCO Shipping Holdings (01919) saw a net outflow of 0.25 billion Hong Kong dollars. According to reports from many media outlets, Hamas has abandoned the demand that Israel commit to a permanent ceasefire before signing a ceasefire agreement. Daiwa released a research report stating that Hamas accepting a ceasefire agreement will improve the situation in the Middle East in the short term, and if successful, shipping prices may recover to levels prior to the blockade of the Red Sea route. Daiwa pointed out that although shipping stocks have been supported by a significant increase in freight rates, shipping prices may not immediately fall. However, the recent development of the situation is expected to put significant pressure on the stock prices of shipping companies.

Tencent (00700) saw a net outflow of 0.257 billion Hong Kong dollars. On July 12th, Tencent spent approximately 1 billion Hong Kong dollars to repurchase 2.54 million shares. Since the authorization resolution for repurchase was passed, the group has repurchased nearly 0.102 billion shares. It is worth mentioning that according to Tencent Holdings' announcement, it will announce its interim results on August 14th, and the previous month was a quiet period. July 12th was the last day of Tencent's repurchase during this period.

CNOOC (00883) saw a net outflow of 0.273 billion Hong Kong dollars. According to Guotai Junan, the view that the crude oil benchmark price will remain above $85/barrel is unchanged. It is expected that the balance sheet will weaken after Q4, and the overall trend in the second half of the year will be upward, then downward. Morgan Stanley issued research reports, indicating that investors have recently shifted their focus to high-yield stocks. Relative to the yield of 2.3% on Chinese 10-year treasury bonds, CNOOC H shares still provide a yield of more than 6%, pushing capital to flow into the stock and providing room for re-rating.

In addition, Xiaomi Group-W (01810) received a net purchase of HKD 0.207 billion, while China Mobile (00941), Semiconductor Manufacturing International Corporation (00981), and China United Network Communications (00762) suffered a net sell-off of HKD 0.186 billion, HKD 0.103 billion, and HKD 1.15 million, respectively.