On April 24, the Hong Kong stock market saw net inflows of HK$3.46 billion from northbound capital. Specifically, the Shanghai-Hong Kong Stock Connect recorded net inflows of HK$4.169 billion, while the Shenzhen-Hong Kong Stock Connect recorded net outflows of HK$709 million. The stocks receiving the highest net purchases from northbound capital were CNOOC (00883), CHINA MOBILE (00941), and YOFC (06869). The stocks with the highest net sales were the Tracker Fund (02800), SMIC (00981), and BABA-W (09988).
CNOOC (00883) attracted net purchases of HK$711 million. In related news, Morgan Stanley published a report stating it expects CNOOC to continue outperforming the three major mainland Chinese oil companies on cost control. The report noted that its low-cost strategy and strong execution track record should position the company favorably to benefit fully from rising oil prices. It also mentioned that CNOOC's commitment to a dividend payout ratio of no less than 45% for fiscal years 2025 to 2027 may indicate management's optimistic confidence in oil price trends and company earnings.
CHINA MOBILE (00941) saw net inflows of HK$546 million. The company reported first-quarter revenue of RMB 266.5 billion, a moderate increase of 1.0% year-on-year, although revenue from its core telecommunications business fell by 1.1%. Net profit declined by 4.2% to RMB 29.3 billion. Citi viewed the first-quarter profit as slightly below market expectations. UBS anticipated a neutral investor reaction, considering the results in line with expectations and consistent with full-year management guidance, while the impact of value-added tax adjustments was already well understood by the market.
YOFC (06869) received net purchases of HK$263 million. China Securities (CSC) pointed out that the domestic optical fiber industry has shown rare positive momentum this year, characterized by simultaneous increases in both volume and price, with prices for some fiber varieties surging 650% compared to the same period last year. Considering the strong demand for optical fiber driven by AI and unmanned aerial vehicles by 2026, coupled with slow expansion in optical preform production capacity, the entire optical fiber and cable market is expected to remain in a state of short supply in 2026, with fiber prices likely to stay elevated.
HUA HONG SEMI (01347) and SMIC (00981) both experienced sharp price increases in the afternoon session, prompting northbound capital to sell into strength, resulting in net sales of HK$137 million and HK$471 million, respectively. Additionally, TENCENT (00700) and BABA-W (09988) saw net sales of HK$132 million and HK$175 million, respectively. In related news, on April 24, DeepSeek officially released the preview version of its new large model series, DeepSeek-V4. Reports earlier this month had indicated that DeepSeek V4 had achieved deep compatibility with domestic chips, such as those from Huawei's Ascend series.
The Tracker Fund (02800) recorded net sales of HK$1.432 billion. Soochow Securities commented that, looking ahead, within the global macroeconomic framework, geopolitical factors are transitioning from temporary disruptions to long-term constraints. Guotai Junan Securities added that the core significance of US-Iran negotiations lies not in a temporary easing of market risk appetite but in defining the boundaries of risk. Subsequently, investors may become gradually less sensitive to risk factors while growing increasingly responsive to positive developments.
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