Northbound funds | Northbound trading saw a net buy of 13.51 billion yuan, with domestic capital rushing to buy Hong Kong stock ETFs all day, continuing to increase holdings in tech stocks such as Alibaba (09988).

On November 18, in the Hong Kong stock market, the net purchase of mainland funds amounted to 13.551 billion Hong Kong dollars, with a net purchase of 7.864 billion Hong Kong dollars through the Shanghai-Hong Kong Stock Connect and a net purchase of 5.687 billion Hong Kong dollars through the Shenzhen-Hong Kong Stock Connect. The stocks with the most net purchase by mainland funds were TRACKER FUND OF HONG KONG (02800), Hang Seng H-Share Index ETF (02828), and BABA-W (09988). The stock with the most net sale by mainland funds was SUNAC (01918). Active trading stocks through the Shanghai-Hong Kong Stock Connect: Active trading stocks through the Shenzhen-Hong Kong Stock Connect: Throughout the day, mainland funds aggressively bought Hong Kong stock 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 purchases of 4.187 billion, 1.152 billion, and 0.606 billion Hong Kong dollars respectively. On the news front, a recent research report by China Securities Co., Ltd. stated that since October 8, the Hong Kong stock market has continued to fall, with the Hang Seng Index dropping more than two-thirds of the gains from September 25 to October 7. During this correction period, both positive and negative factors existed, so the current correction in the Hong Kong stock market should be relatively sufficient. With the recent downward trend in the Hong Kong stock market and the divergent trends between Hong Kong and A-shares, the valuation of Hong Kong stocks and the premium of AH shares once again demonstrate high cost performance. Although Trump's victory has impacted the Hong Kong stock market, in the mid-term, Trump's policy proposals are beneficial to the liquidity of Hong Kong stocks. Therefore, after the short-term impact ends, we believe that the Hong Kong stock market may usher in a bull market. Now is the most cost-effective time to position Hong Kong stocks, with the technology sector being the most recommended. BABA-W (09988) received a net purchase of 0.756 billion Hong Kong dollars. On the news front, Citigroup published a report indicating that Alibaba's performance for the second quarter ending in September met the bank's expectations, with adjusted net profit and EBITA slightly exceeding expectations. However, market expectations for its performance may be high. Client management revenue (CMR) increased by 2.5% year-on-year, while the commission rate remained stable year-on-year, indicating a slowdown in the high-single-digit growth in Gross Merchandise Volume (GMV) compared to the previous quarter. Entering the third quarter of Alibaba in 2025, the bank expects GMV to accelerate again after a strong performance in stimulating demand and the Double 11 event. MEITUAN-W (03690) received a net purchase of 0.537 billion Hong Kong dollars. On the news front, a previous report by Credit Suisse forecasted a healthy 20% year-on-year growth in total revenue for Meituan in the third quarter, reaching 91.8 billion yuan. Adjusted EBIT is expected to rise by 141% year-on-year to 12 billion yuan. Due to increased orders, food delivery revenue is expected to increase by 14% year-on-year, while revenue from in-store, hotel, and travel services may increase by 23% year-on-year, mainly due to an increase in total transaction volume. The bank predicts that Meituan's core business will see a 37% year-on-year increase in adjusted EBIT in the third quarter, reaching 13.8 billion yuan, with a record high profit margin in food delivery and a rebound in in-store profit margin. Losses from new businesses are expected to narrow by 65% year-on-year to 1.8 billion yuan, with this trend expected to continue into the fourth quarter. Ping An Insurance (02318) received a net purchase of 0.487 billion Hong Kong dollars. Citigroup's research report pointed out that Ping An Insurance demonstrates strong growth potential in new business value (NBV), and with product innovation and diversification of sales channels, the bank gave a "buy" rating to Ping An Insurance H shares, with a target price of 52.5 Hong Kong dollars. The report cited comments from the company's management that they expect year-on-year positive growth in NBV by the first quarter of 2025, and that the company has adjusted incentive policies for the flagship product "Safe Money Plus" to promote sales of long-term policies (10 years and above). Tencent (00700) received a net purchase of 0.419 billion Hong Kong dollars. On the news front, CMSC published a report stating that Tencent's third-quarter profits exceeded expectations, benefiting from the recovery in gaming and advertising revenue, with all business lines showing improved profit margins. During the period, the advertising business maintained steady growth, with strong growth in advertising products such as Video Number, Mini Programs, and Search. The bank believes that Tencent's evergreen game base is solid, with a rich reserve of new games, and is confident in the incremental contribution from games such as Dungeon & Warrior mobile game in the fourth quarter and the first half of next year, as well as the release of more heavyweight games like "King of Honor: World", "Fearless Covenant" domestic service, and "One Piece" among others. CNOOC (00883) received a net purchase of 0.401 billion Hong Kong dollars. On the news front, HAITONG INT'L stated that CNOOC achieved operating income of 326.024 billion yuan in the first three quarters of this year, an increase of 6.26% year-on-year; and net profit attributable to shareholders of the parent company reached 116.659 billion yuan, an increase of 19.47% year-on year. The bank pointed out that in the third quarter of this year, Brent crude oil averaged $78.71 per barrel, a decline of 8.40% year-on-year, putting some pressure on the profitability of the oil and gas exploration business. However, the company continued to achieve year-on-year growth in net profit by reducing costs and increasing production. GEELY AUTO (00175) received a net purchase of 0.207 billion Hong Kong dollars. On the news front, Furui published a report stating that GEELY AUTO's third-quarter performance was solid, with core profits reaching 2.8 billion RMB, surpassing the bank's expectation of 2.5 billion RMB, and announced the purchase of 11.3% of the shares from Geely Holding, increasing its stake in Geely to 62.8%. In addition, Geely will acquire a 51% stake in Lynk's auto brand from Geely Holding and Volvo. The bank believes that these reorganization measures mark Geely's beginning of integrating its electric vehicle assets to improve operational efficiency. Although it will take time for these transactions to demonstrate synergies, the bank believes that the group's restructuring through the injection of high-quality electric vehicle assets demonstrates the strategic positioning of the listed company. Additionally, XIAOMI-W (01810) and Semiconductor Manufacturing InternAl Corporation (00981) received net purchases of 279 million and 75.81 million Hong Kong dollars respectively, while SUNAC (01918) suffered net sales of 49.02 million Hong Kong dollars."Bonjour, comment a va ?" "Hello, how are you?"