The Zhitong Finance App learned that on December 18, the Hong Kong Stock Exchange had a net purchase of HK$2.07 billion, of which Hong Kong Stock Connect (Shanghai) had a net purchase of HK$2.693 billion, and the Hong Kong Stock Connect (Shenzhen) transaction had a net sale of HK$0.623 billion.

The individual stocks that Beishui Net bought the most were China Mobile (00941), China Construction Bank (00939), and CNOOC (00883). The individual stocks sold the most by Beishui Net were Tencent (00700), Alibaba-W (09988), and ZTE (00763).

Hong Kong Stock Connect (Shanghai) active trading stocks

Hong Kong Stock Connect (Shenzhen) active trading stocks

China Mobile (00941) received a net purchase of HK$0.584 billion. On the news, Haitong International pointed out that the importance attached to market value management in the operation of central enterprises will continue to increase. The publication of the “Opinion” is expected to further push listed companies controlled by central enterprises to improve the strength, frequency, and efficiency of market value management, thus promoting the value of central enterprises to be more fully reflected in the market. Great Wall Securities pointed out that in the face of a slowdown in C-side growth, operators are focusing on H-side development and seizing gigabit development opportunities. Supported by clear policy expectations, the gigabit business is developed through integrated development and other methods. We are optimistic that the gigabit business will become an important breakthrough in operators' performance growth at this stage by boosting H-side performance. Stable performance growth guarantees the investment value of the dividend attributes of the three major operators.

CCB (00939) received a net purchase of HK$0.276 billion. According to the news, Galaxy Securities pointed out that the medium- to long-term credit repair for residents continues, and the incremental policy is showing results. Fiscal policy is more active, and government debt is expected to continue to support social finance. The accumulation of positive fundamental factors favors bank credit investment and asset quality. Continue to be optimistic about the dividend value in the banking sector and maintain the recommended rating.

CNOOC (00883) received a net purchase of HK$0.198 billion. According to the news, CICC published a research report stating that CNOOC sold its US subsidiary and Gulf of Mexico assets to Innix. The bank estimates that the market value of the traded unit production is about $200 per barrel of oil equivalent. Considering that the overall profit margin of the North American project is lower than the company average, it is inferred that the price-earnings ratio (P/E) valuation of the project transaction is higher than the current valuation of H shares, highlighting that the valuation of CNOOC H shares is still lower than the global oil and gas transaction price.

Ping An of China (02318) received a net purchase of HK$0.147 billion. According to the news, BOC International pointed out that the life insurance industry is still both defensive and flexible at the current valuation level. As the industry's product sales focus shifts to dividend insurance, there is still room for reduction in debt-side costs. Recently, the Politburo Central Committee meeting and the Central Economic Work Conference proposed implementing a more active fiscal policy and a moderately loose monetary policy, which is conducive to promoting the improvement trend on the asset side.

Jingtai Holdings-P (02228) received a net purchase of HK$0.115 billion. According to the news, on December 16, Jingtai Technology and Microsoft China announced the signing of a strategic cooperation memorandum to cooperate using cutting-edge technologies such as artificial intelligence (AI), large models, and robotics laboratories, and actively explore innovative applications of these technologies in biomedicine and materials science, and create a new chapter in scientific research, education and innovative applications. It is worth noting that in August of this year, Jingtai Technology and GCL Group signed a 5-year cooperation agreement to jointly develop a series of differentiated new materials with industry competitiveness and industrial application potential, and to build an AI+ automated digital intelligence creation system driven by a large model in the materials field for GCL.

Suteng Juchuang (02498) received a net purchase of HK$70.56 million. According to the news, SPDB International released a research report saying that in the actual context of fierce competition in the Chinese vehicle market, car companies continue to pursue smart driving solutions to reduce costs, thereby reducing smart driving functions to lower price models. Among them, lidar is a hardware with a high unit price, and the rapid rise of Chinese manufacturers has driven a significant decline in the average unit price of the industry, and the cost reduction is faster than expected. At the same time, Sagitar and Hesai have both announced cost performance plans for the $200 price range. Mass production will begin as soon as 1Q25, which will help ease the cost pressure on car companies and reverse affect the vehicle companies' load rates to achieve a positive cycle.

Alibaba-W (09988) and Tencent (00700) had net sales of HK$3.79 million and HK$0.188 billion respectively. According to the news, CMB International published a report looking forward to China's Internet industry going against the wind next year. The introduction of incremental and substantial consumer promotion policies may still be a key driving factor in the structural increase in sector valuations. Until then, the sector may remain volatile, and shareholder return levels, profit growth rate, and certainty may be the key support for valuation.

Additionally, Xiaomi Group-W (01810) received a net purchase of HK$0.117 billion. Meanwhile, ZTE (00763) had a net sale of HK$2.43 million.