According to the Smart Finance App, in Hong Kong stock market on July 18, the northbound inflow of funds amounted to a net purchase of 2.396 billion HKD, of which the Shanghai-Hong Kong Stock Connect had a net purchase of 1.674 billion HKD and the Shenzhen-Hong Kong Stock Connect had a net purchase of 0.722 billion HKD.

The stocks that received the most net purchases from northbound investors are Tencent (00700), Xiaomi Corporation-W (01810), and CNOOC (00883). The stocks that received the most net sales from northbound investors are Tracker Fund of Hong Kong (02800), China Construction Bank Corporation (00939), and Hong Kong Exchanges and Clearing Limited (00388).

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

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

Tencent (00700) received a net purchase of 1.399 billion HKD. According to the news, JPMorgan released a research report, which predicts that Tencent's revenue and adjusted operating profit in the second quarter of 2023 will increase by 7% and 25% respectively. At the same time, Tencent's share buyback volume in the second quarter exceeded the selling volume of its major shareholder, Prosus. Lyon also predicts that Tencent's performance in the second quarter of 2024 will be robust. Driven by the rebound in games and strong growth in advertising, total revenue is expected to increase by 8% year-on-year to RMB 161.6 billion; adjusted operating profit is expected to increase by 24% year-on-year to RMB 57.1 billion.

CNOOC (00883) received a net purchase of 0.177 billion HKD. According to the news, China National Offshore Oil Corporation announced that the company has formulated the "Improving Quality and Efficiency and Returning Value" action plan for 2024, planning to maintain an annual dividend payout ratio of not less than 40% and an absolute dividend of not less than HKD 0.70 per share (tax included) throughout the year. The company will maintain the continuity and stability of the shareholder return policy on the basis of comprehensively considering future income, capital requirements, financial conditions, and future prospects, and provide shareholders with competitive dividends.

China Mobile (00941) and China Telecom (00728) received a net purchase of 0.13 billion and 35.36 million HKD respectively. According to the news, JPMorgan issued a research report reiterating the "overweight" rating for the three major telecommunications stocks. The bank is bullish on China Mobile, with a yield of 7% and an annual average compound growth rate of 7% for dividends; being highly defensive in volatile markets; the stock price of China Mobile has fallen behind that of China Telecom and China Unicom, but has the potential to catch up. The bank expects the second-quarter revenue of telecommunication stocks to be weak but the profit to be sound.

China Shenhua Energy (01088) received a net purchase of 0.119 billion HKD. According to the news, Shanxi Securities said that due to strict normalized safety supervision and still having room for the stable economic policy, the policies to stabilize the economy such as real estate and infrastructure are still expected to show a marginal improvement in the future, and coal demands are relatively strong. We believe that it will be difficult to further ease the supply and demand relationship of coal in 2024, and prices are expected to remain high. GF Securities stated that it is expected that with the increase in seasonal demand and better macro prospects, there is room for both electrical and non-electrical demand to rise, and coal prices may continue to stabilize and improve.

Nongfu Spring (09633) received a net purchase of 96.06 million HKD. According to the news, the official website of the Hong Kong Consumer Council issued a clarification statement. The statement mentioned that after meeting with representatives from Nongfu Spring and having in-depth communication, it was understood that the relevant products belong to the category of drinking natural water. The product of the company follows the "Packaged Drinking Water National Standard" (GB19298-2014) produced in the Mainland. Therefore, the Hong Kong Consumer Council has reclassified the sample of this product as "Drinking Natural Water", and has adjusted its rating from 4.5 stars to 5 stars. The Hong Kong Consumer Council apologizes for the misunderstanding caused by the disparity in sample classification in this test.

Hong Kong Exchanges and Clearing Limited (00388) received a net sale of 0.13 billion HKD. According to the news, Caitong Securities pointed out that Hong Kong stock market trading volume shrank in June, and the overall marginal improvement in the second quarter; IPOs in June rebounded, but are still at a historical low. The bank pointed out that the company's valuation has fallen to a historical low due to the downward impact of the Hong Kong stock market in June. With the lower-than-expected US inflation data in June, interest rate cuts and trades may return to the market mainstream.

Tracker Fund of Hong Kong (02800) received a net sale of 0.583 billion HKD. According to the news, Soochow Securities pointed out that the downward risk of Hong Kong stocks in the future has a bottom. This is mainly due to the stage release of macroeconomic downside risks; the valuation of Hong Kong stocks is still cheap enough; although the US Federal Reserve has repeatedly postponed interest rate cuts, global investors vote with their feet, and it is expected that the interest rate cut cycle has begun. Anxin International believes that Hong Kong stocks still have to bear pressure in the short term in the face of weak economic situation and uncertainties in the US political situation.

In addition, Xiaomi Group-W(01810) received a net buy of HKD 0.241 billion. However, China Construction Bank Corporation(00939), China Res Power(00836), Semiconductor Manufacturing International Corporation(00981) received a net sell of HKD 0.277 billion, 79.29 million, and 21.58 million, respectively.