Northbound funds | Northbound trading net inflow of 19.656 billion yuan, mainland investors vigorously scramble for Hong Kong Stock ETFs, Tencent (00700) received an additional investment of over 1.6 billion Hong Kong dollars after its performance.

On November 14th, in the Hong Kong stock market, Northbound funds had a net buy of 19.656 billion Hong Kong dollars, with the Shanghai-Hong Kong Stock Connect having a net buy of 10.052 billion Hong Kong dollars, and the Shenzhen-Hong Kong Stock Connect having a net buy of 9.604 billion Hong Kong dollars. The stocks that Northbound funds bought the most were TRACKER FUND OF HONG KONG (02800), Tencent (00700), BABA-W (09988), Hang Seng H-Share Index ETF (02828), and MEITUAN-W (03690). Active traded stocks through the Shanghai-Hong Kong Stock Connect: Active traded stocks through the Shenzhen-Hong Kong Stock Connect: Northbound funds are rushing to buy Hong Kong ETFs, with TRACKER FUND OF HONG KONG (02800), Hang Seng H-Share Index ETF (02828), and CSOP Hang Seng TECH Index ETF (03033) receiving net buys of 4.654 billion, 0.873 billion, and 0.502 billion Hong Kong dollars respectively. In terms of news, the October US CPI data met expectations, temporarily stabilizing the expectation of a rate cut in December, but the US dollar has not yet hit a turning point. At the time of writing, the US dollar index rose to 106.89, reaching a new high in over a year. Zhongjin believes that the future trend of the RMB against the US dollar will be mainly driven by the relative changes in the fundamentals of the two countries. There is no need to worry too much about foreign capital continuing to flow out of the Hong Kong stock market due to potential trade disturbances. Looking ahead to 2025, with a series of policies gradually implemented in China and continuous improvement in investor expectations, the bank predicts that the Hong Kong stock market will usher in a reversal rally. Chinese internet stocks are favored by domestic investors, with Tencent (00700) receiving a net buy of 1.628 billion Hong Kong dollars after its quarterly performance. In terms of news, TENCENT released its third-quarter report, with revenue of 487.811 billion yuan, a 7% year-on-year increase; the company's attributable profit to equity holders was 142.749 billion yuan, a 62% year-on-year increase. In the third quarter, revenue was 167.193 billion yuan, an 8% year-on-year increase; the company's attributable profit to equity holders was 53.23 billion yuan, a 47% year-on-year increase. Citigroup believes that Tencent's overall performance in the third quarter meets expectations, with adjusted operating profits significantly exceeding expectations, mainly due to the high contribution of profit from equity affiliates. BABA-W (09988), MEITUAN-W (03690), XIAOMI-W (01810), and KUAISHOU-W (01024) received net buys of 938 million, 710 million, 415 million, and 161 million Hong Kong dollars respectively. This week, NETDRAGON, an internet leader, will successively disclose its third-quarter report. Goldman Sachs released a research report stating that it is expected that the third-quarter revenue of the internet giants will meet expectations. Investors will focus on the fourth quarter guidance due to policy changes in mainland China at the end of September, comments from management on recent consumer trends, progress in advertising technology, AI cloud spending investments by CKH HOLDINGS, how companies are coping with cross-border business under potential US tariffs, and any updates on shareholder return policies. SUNAC (01918) received a net buy of 174 million Hong Kong dollars. In terms of news, on November 13th, the Ministry of Finance and two other departments issued a notice on tax policies to promote the stable and healthy development of the real estate market, clarifying multiple tax preferential policies that support the development of the real estate market. With regards to deed tax, the current area standard eligible for a 1% lower tax rate will be raised from 90 square meters to 140 square meters; with regards to land value-added tax, the lower limit of the pre-tax rate in various regions will be uniformly reduced by 0.5 percentage points; regarding value-added tax, the sale of houses purchased for over 2 years will be exempt from VAT. FOURTH PARADIGM (06682) received a net buy of 1.23 billion Hong Kong dollars. In terms of news, on November 7th, MSCI Index Company announced the half-yearly review results of its MSCI series indices, with related adjustments to take effect after market close on November 25th. The MSCI Global Small Cap Index added 11 stocks from China, including FOURTH PARADIGM. Haitong previously stated that the company's revenue in the first half of the year saw steady growth, maintaining a clear trend of reducing losses, confirming the feasibility of the company's current business model. The company is currently focusing on the commercialization of AI technology through the "Prophet Inside" model, helping AI to be applied in various industries, and the company's long-term growth potential is worth looking forward to. In addition, Semiconductor Manufacturing International Corporation (00981) received a net buy of 305 million Hong Kong dollars, and CNOOC (00883) received a net buy of 13.8085 million Hong Kong dollars.