Northbound funds | Northbound trading saw a net buying of 1.535 billion yuan, with domestic funds continuing to scramble for Semiconductor Manufacturing International Corporation (00981) while selling China National Offshore Oil Corporation (00883).

On January 21st, in the Hong Kong stock market, the net purchase of Northbound funds was 1.535 billion Hong Kong dollars, with a net purchase of 2.59 billion Hong Kong dollars through the Shanghai-Hong Kong Stock Connect and a net sale of 1.054 billion Hong Kong dollars through the Shenzhen-Hong Kong Stock Connect. The stocks with the most net purchases by Northbound funds were Semiconductor Manufacturing International Corporation (00981), ZTE Corporation (00763), and BABA-W (09988). The stocks with the most net sales by Northbound funds were CNOOC (00883) and Hang Seng H-Share Index ETF (02828). Active trading stocks through the Shanghai-Hong Kong Stock Connect: Active trading stocks through the Shenzhen-Hong Kong Stock Connect: Semiconductor Manufacturing International Corporation (00981) received a net purchase of 861 million Hong Kong dollars. According to media reports, newly inaugurated US President Trump signed an executive order on the 20th to abolish nearly 80 policies of the Biden administration. Tianfeng previously pointed out the importance of monitoring changes in US semiconductor policy towards China before and after the presidential transition. The bank believes that external geopolitical restrictions on China's semiconductors will accelerate the development of the local industry chain, with domestic substitution being a long-term trend. The development opportunities for the domestic industrial chain are greater in areas such as artificial intelligence and advanced processes, and it is recommended to pay attention to investment opportunities in these areas. ZTE Corporation (00763) received a net purchase of 253 million Hong Kong dollars. Sinolink pointed out that against the backdrop of intensified bans and domestic internet companies, led by ByteDance, actively building computing power, it is expected that domestic computing power will see a large-scale increase by 2025, directly benefiting companies such as Chengdu Hi-Tech Development, ZTE Corporation, and Unisplendour Corporation. In addition, ZTE Microelectronics has gradually developed from customized processors in the communication field to customized computing power chips in the general computing and accelerator fields, covering various specifications and applications. The company's independent chip business is driving up its valuation, opening up growth opportunities. BABA-W (09988) received a net purchase of 130 million Hong Kong dollars. Nomura released a research report indicating that Alibaba's e-commerce business growth in the third quarter ending in late December may accelerate, with overall revenue expected to grow by 10% year-on-year, which is 3% higher than market expectations. Customer Management Revenue (CMR) is expected to grow by 6%, slightly faster than the previous quarter's 2.5% growth, and slightly higher than the market's 5% expectation. Tencent (00700) received a net purchase of 121 million Hong Kong dollars. Huatai released a research report stating that Tencent's revenue in the fourth quarter of last year is expected to increase by 8% year-on-year, with adjusted net profit increasing by 25% year-on-year to 53.5 billion RMB. The bank stated that after Tencent was included in the CMC list on January 7th, market sentiment may be affected in the short term, but it continues to be optimistic about Tencent's fundamentals for 2025. Important catalysts come from Tencent potentially releasing new AI features this year, empowering mobile applications, improving user stickiness, and the advertising loading rate of Video Number expected to continue to rise. It is expected that the monthly average revenue from the game "Fearless Pledge" will reach 500 million to 1 billion RMB. LI AUTO-W (02015) and XPENG-W (09868) received net purchases of 27.98 million and 8.01 million Hong Kong dollars respectively. The China Automobile Dealers Association predicts that there will be over 23 million passenger vehicles eligible for subsidies this year. Faced with the potential incremental space brought by the "Two News" policy this year, car companies are further increasing discounts and replacement subsidies in order to capture the window of opportunity for releasing automotive consumer demand. According to preliminary statistics from the Ministry of Commerce, over 6.8 million vehicles were traded in for new ones nationwide in 2024. EB Securities believes that with the further promotion of the "new-for-old" policy in 2025, it is expected to further help domestic new energy vehicles capture market share from joint venture fuel vehicles, and leading car companies may further increase market concentration. WEIMOB INC (02013) received a net purchase of 22.82 million Hong Kong dollars. WeChat has once again upgraded the "gift-giving" feature, embedding the function into the chat box in this grayscale update. The feature is now alongside red packets and allows users to write personalized wishes and carefully select desired gifts. WEIMOB INC previously launched five solutions for "Weimeng x WeChat Mini Stores". Weimeng stated that these five sets of solutions will comprehensively enhance the operational efficiency and business capabilities of businesses based on the WeChat Mini Store ecosystem through integrated operations, intelligent efficiency enhancement, organization node management, and the WeChat Mini Store CRM member operational system. CNOOC (00883) experienced a net selling of 44.81 million Hong Kong dollars. The International Energy Agency (IEA) stated in its latest monthly report that new US sanctions on Russian oil could significantly disrupt the country's oil supply chain, potentially tightening the global market. However, the IEA's evaluation of the impact of sanctions on Russian supplies is more cautious than when the crisis in Ukraine began in March 2022 and sanctions were first imposed. Additionally, due to the moderate expansion of supply from non-OPEC+ oil-producing countries exceeding global demand, the market will experience oversupply this year. In addition, SUNAC (01918) received a net purchase of 61.78 million Hong Kong dollars, while Hang Seng H-Share Index ETF (02828) experienced a net selling of 16.96 million Hong Kong dollars.