Northbound funds | Northbound trading recorded a net buying of 5.124 billion, with domestic investors continuing to favor high dividend-paying state-owned enterprises, such as adding over 600 million Hong Kong dollars to China Mobile Limited (00941).

On January 6, in the Hong Kong stock market, Institutional investors made a net purchase of 5.124 billion Hong Kong dollars. Among them, the net buying through the Shanghai-Hong Kong Stock Connect was 4.357 billion Hong Kong dollars, and the net buying through the Shenzhen-Hong Kong Stock Connect was 0.766 billion Hong Kong dollars. The stocks with the most net buying by institutional investors were XIAOMI-W (01810), China Mobile Limited (00941), and Tencent (00700). The stocks with the most net selling by institutional investors were BABA-W (09988) and Hang Seng H-Share Index ETF (02828). Active trading stocks through the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect included China Mobile Limited (00941) which received a net buying of 6.35 billion Hong Kong dollars. GF SEC pointed out that the fundamental aspects of the telecommunications industry are expected to stabilize in 2024 and improve in 2025. They recommend investing in telecommunication operators with a low volatility dividend potential in a context of abundant liquidity. China Galaxy Securities indicated that the demand for communication equipment, which serves as the foundation for the digital economy's computing power, is expected to experience high growth, presenting potential opportunities for related sectors. Tencent (00700) received a net buying of 2.63 billion Hong Kong dollars. Goldman Sachs stated that Tencent has shown strong leadership in various internet sectors, particularly in video, payment, and gaming. The company is actively exploring generative artificial intelligence, using high-performance computing and data resources to narrow the gap with competitors. Additionally, knowledge property development at CHINA LIT is expected to monetize internet literature IPs through various entertainment formats. Goldman Sachs holds an optimistic view on Tencent's revenue growth and profit potential. Industrial and Commercial Bank of China (01398) received a net buying of 2.16 billion Hong Kong dollars. On January 3, Hong Kong Exchanges and Clearing Limited disclosed that Ping An Asset Management Company recently purchased about 110 million H-shares of Industrial and Commercial Bank of China on the market, involving around 5.7 billion Hong Kong dollars. After this purchase, Ping An Asset Management's stake in Industrial and Commercial Bank of China's H-shares increased from 16.99% to 17.11%, with a total ownership of 14.859 billion shares. It is reported that Ping An Insurance and other subsidiaries of Ping An Group have previously bought Industrial and Commercial Bank of China H-shares multiple times. CNOOC Limited (00883) received a net buying of 1.5 billion Hong Kong dollars. National Investment Securities' report recognized CNOOC Limited as China's largest offshore oil and gas production operator. The company has a diversified asset structure and global operational management capabilities, occupying a significant position in the industry with its robust financial performance and good cost control ability. Looking ahead, the company is expected to benefit from its inherent oil and gas resources and continued capital investment, while high dividends demonstrate long-term investment value. Semiconductor Manufacturing International Corporation (00981) received a net buying of 1.25 billion Hong Kong dollars. TechInsights, a semiconductor industry observation agency, released the outlook for the semiconductor manufacturing market in 2025, expecting a 26% growth in IC sales due to improved end demand and rising prices. In addition, semiconductor capital expenditure is projected to increase by 14%. Ping An Securities noted that the semiconductor industry is in a phase of recovery, with the rebound in consumer electronics driving a new cycle of growth in the industry. There was a divergence in Hong Kong stock ETFs, with the Tracker Fund of Hong Kong (02800) receiving a net buying of 1.1 billion Hong Kong dollars, while the Hang Seng H-Share Index ETF (02828) experienced a net selling of 584.2 million Hong Kong dollars. China International Capital Corporation highlighted that the unexpected weakness in the A-share and Hong Kong stock market in the first week of 2025 caught many investors off guard. However, Hong Kong stocks performed better than A-shares, validating several assessments: the market as a whole has not yet broken out of its volatile pattern; caution is still advised as the market position remains uncertain; Hong Kong stocks' main advantage over A-shares comes from their attractive valuation and industry structure. BABA-W (09988) suffered a net selling of 975.7 million Hong Kong dollars. EB Securities stated that Alibaba's sale of Intime Department Store and Sun Art Retail may have a certain adverse impact on the company's investment returns in the short term, but in the long run, it will be beneficial for the healthy development of the company's core business. The bank believes that Alibaba will continue to seek monetization of non-core assets, in order to focus more on its core business. Additionally, XIAOMI-W (01810), MEITUAN-W (03690), and SUNAC (01918) received net buying of 1.4 billion, 149 million, and 75.15 million Hong Kong dollars, respectively.