Northbound trading: Net buying of 2.906 billion Hong Kong dollars by northbound investors. Domestic investors continue to increase their holdings of XPeng Inc. (09868) and Hong Kong Exchanges and Clearing Limited (00388).

On August 29, the Hong Kong stock market saw a net purchase of 2.906 billion Hong Kong dollars by Northbound investors. Among them, Stock Connect Shanghai had a net purchase of 1.601 billion Hong Kong dollars, and Stock Connect Shenzhen had a net purchase of 1.305 billion Hong Kong dollars. The top three net buying stocks by Northbound investors were XPENG-W (09868), CNOOC Limited (00883), and KUAISHOU-W (01024). The top three net selling stocks were China Mobile Limited (00941), EAST BUY (01797), and Tencent Holdings Limited (00700). The most active trading stocks through Stock Connect Shanghai were LI AUTO-W (02015), China Mobile Limited (00941), and Tencent Holdings Limited (00700). The most active trading stocks through Stock Connect Shenzhen were XPENG-W (09868), KUAISHOU-W (01024), and MEITUAN-W (03690). XPENG-W (09868) had a net purchase of 389 million Hong Kong dollars. According to a report from Bank of America Securities, XPENG management expects monthly deliveries to reach 15,000 vehicles in September and 20,000 vehicles in the fourth quarter, including 10,000 G6 models. The company is upgrading its supply chain to meet the demand for G6 model orders. The company also plans to launch 2-3 new models next year, with prices ranging from 150,000 to 300,000 yuan. It will gradually phase out low-profit-margin old models to improve its product portfolio. By improving technology and design, the company aims to reduce costs and increase gross profit margins. CNOOC Limited (00883) had a net purchase of 285 million Hong Kong dollars. Dongxing stated that the company is one of the world's largest pure upstream oil and gas companies, as well as a leading player in China's offshore oil and gas exploration and development. Its crude oil production is among the top three in China. The company's main business is oil and gas exploration and sales, and its production is expected to increase rapidly in the next three years. The company has strong cost control capabilities, and its total lifting cost has significantly decreased in recent years. Its oil production costs are internationally competitive. KUAISHOU-W (01024) had a net purchase of 243 million Hong Kong dollars. Kuaishou recently released its second-quarter earnings report. The report showed revenue of 27.744 billion yuan, a year-on-year increase of 27.9%, and a net profit of 1.481 billion yuan, compared to a loss of 3.176 billion yuan in the same period last year, achieving quarterly profitability for the first time. In the second quarter, Kuaishou's average monthly active users (MAU) and daily active users (DAU) reached 673 million and 376 million, respectively, a year-on-year increase of 14.8% and 8.3%, setting new historical highs and achieving a year-on-year increase in total user time. In addition, Kuaishou's e-commerce GMV reached 2655 billion yuan in the second quarter, a year-on-year increase of nearly 39%. Hong Kong Exchanges and Clearing Limited (00388) had a net purchase of 167 million Hong Kong dollars. On August 27, Hong Kong Chief Executive Carrie Lam announced the establishment of a working group led by the Financial Secretary to study how to increase market liquidity in the stock market. It was later announced that Hong Kong had established a dedicated task force to promote market liquidity in the stock market, comprehensively reviewing the major internal and external factors affecting market liquidity, and submitting improvement recommendations to the Chief Executive. MEITUAN-W (03690) had a net purchase of 161 million Hong Kong dollars. Meituan recently released its second-quarter 2023 results. The data showed quarterly revenue of 67.965 billion yuan, a year-on-year increase of 33.4%, and adjusted net profit of 7.66 billion yuan, a year-on-year increase of 272.2%. The company achieved a net profit of 4.7 billion yuan, compared to a loss of 1.1 billion yuan in the same period last year, achieving a year-on-year turnaround. All key indicators exceeded expectations. Semiconductor Manufacturing International Corporation (00981) had a net purchase of 91.13 million Hong Kong dollars. Semiconductor Manufacturing International Corporation announced its interim results, with revenue of approximately $3.023 billion, a year-on-year decrease of 19.3%, and net profit attributable to shareholders of the listed company of approximately $634 million, a year-on-year decrease of 34.1%. Dr. Zhao Haijun, Co-CEO of Semiconductor Manufacturing International Corporation, pointed out that the inventory of products from major Chinese design companies has gradually decreased, and some new products are beginning to build up inventory in preparation for shipments in the second half of 2023 and 2024, with sales revenue expected to be better than the first half of 2023. Inland bank stocks saw increased positions by Northbound investors, with Industrial and Commercial Bank of China (01398) and China Construction Bank Corporation (00939) receiving net purchases of 85.71 million and 22.2 million Hong Kong dollars, respectively. Citic Securities believes that the expected risk of real estate debt in the bank stock trading has eased, but the valuation pressure has not been systematically resolved. Therefore, while the bottom of the valuation is clear, a breakthrough still requires signals such as adjustments to mortgage loan rates and the implementation of real estate-debt securitization. CG SERVICES (06098) saw a net sell-off of 47.29 million Hong Kong dollars. CG SERVICES announced its interim results, with revenue of 20.733 billion yuan, a year-on-year increase of 3.4%, gross profit of 5.158 billion yuan, a year-on-year decrease of 4.3%, and net profit attributable to shareholders of 2.351 billion yuan, a year-on-year decrease of 8.7%. This was mainly due to a decrease in the gross profit margin of community value-added services and non-owner value-added services. In addition, LI AUTO-W (02015) had a net purchase of 75.65 million Hong Kong dollars, while China Mobile Limited (00941), EAST BUY (01797), and Tencent Holdings Limited (00700) saw net sell-offs of 178 million, 109 million, and 62.21 million Hong Kong dollars, respectively.