Societe Generale Securities: Who is buying Hong Kong stocks?

The Zhitong Finance App learned that Societe Generale Securities released a research report saying that judging from the net inflow of the four types of capital, southbound capital has been the main force in increasing positions in Hong Kong stocks since July, while foreign capital has returned sharply since mid-July. Since July (as of August 5), there have been net inflows of HK$751/69/- 309/-8.1 billion in Hong Kong capital since July. Southbound capital has been the main force behind increasing positions in Hong Kong stocks since July. Meanwhile, the return of foreign capital began in mid-July, with a cumulative net inflow of over HK$60 billion since July 16, and gradually shifting from passive recovery positions to active and passive capital resonance increases.

Societe Generale Securities's main views are as follows:

Since July, Hong Kong stocks have been an important direction for global capital “rebalancing”. For reference, various types of capital inflow structures have been dismantled:

Judging from the net inflow of the four types of capital, southward capital has been the main force in increasing positions in Hong Kong stocks since July, while foreign capital has returned sharply since mid-July. Since July (as of August 5), there have been net inflows of HK$751/69/- 309/-8.1 billion in Hong Kong capital since July. Southbound capital has been the main force behind increasing positions in Hong Kong stocks since July. Meanwhile, the return of foreign capital began in mid-July, with a cumulative net inflow of over HK$60 billion since July 16, and gradually shifting from passive recovery positions to active and passive capital resonance increases.

Looking at each level of industry: Southbound capital mainly increases positions in technology, raw materials, pharmaceuticals, finance, and industry; foreign capital mainly increases positions in finance, non-essential consumption, industry, and reduces positions in technology, raw materials, and pharmaceuticals.

Looking at various secondary industries: Southbound capital mainly increases positions in software, non-ferrous metals, semiconductors, pharmaceuticals, professional retail, reduction insurance, IT equipment, and industrial engineering; foreign investors mainly increase positions in banks, IT equipment, insurance, professional retail, industrial engineering, software, semiconductors, non-ferrous metals, and pharmaceuticals.

Looking at the pace of inflows into important sectors: Mainland capital increased positions in major sectors in mid-early July, and inflows began to slow and shift to net outflows in late July. Meanwhile, the Internet and high dividends are two important directions for foreign capital inflows since mid-late July.

Hong Kong stock internet: In mid-early July, domestic investment increased and foreign investment reduced; in late July, domestic capital began to reduce its positions and foreign capital increased drastically; since August, domestic and foreign investment resonated net inflows, and the market slope increased.

Innovative drugs in Hong Kong stocks: In July, domestic capital was the main force for increasing positions, and the overall profit from foreign capital came to an end; since the end of July, domestic capital turned to a net outflow, and foreign capital began to flow in net.

High dividends from Hong Kong stocks: Large net inflows of domestic capital in mid-early July, net outflows began after global risk appetite increased at the end of July; continuous large net inflows of foreign capital began in mid-July.

Look at individual stocks:

Capital from the south: In the past 20 days, it has mainly flowed into major model manufacturers (Smart Spectrum), major Internet companies (NetEase, Ali, Kuaishou), semiconductors (Tianshu Zhixin, Zhaoyi Innovation), non-ferrous (China Hongqiao, Zijin), AI healthcare (Insili), major Internet manufacturers (Tencent), semiconductors (SMIC), optical cables (Changfei), and high dividends (Sinopec, Life Insurance, ICBC).

Foreign capital: In the past 20 days, it has mainly flowed into major Internet companies (Tencent, Meituan, Xiaomi), banks (CCB, ICBC), Zhongji Xuchuang (Goldman Sachs and J.P. Morgan announced a significant increase in holdings), BYD, etc., mainly from major model manufacturers, Internet manufacturers (Ali), semiconductors, and non-ferrous (purple gold).

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Only public data collation, not research opinions or investment suggestions