BEIJING, July 13 (Xinhua) -- China's H-share market saw net outflows of 20.93 billion Hong Kong dollars (HKD) from southbound trading under the Chinese mainland-Hong Kong stock connect scheme in the past days of July by Monday, reported Xinhua-run Xinhua Finance Tuesday.
By July 12, net outflows through southbound trading under the Shanghai-Hong Kong Stock Connect program and Shenzhen-Hong Kong Stock Connect program, stood at 7.96 billion Hong Kong dollars and 12.97 billion Hong Kong dollars respectively.
Southbound trading under the Chinese mainland-Hong Kong stock connect scheme offers investors from the Chinese mainland accesses to trade certain stocks listed on the Stock Exchange of Hong Kong.
Analysts said the net outflows from southbound trading were largely caused by the recent intensive overselling of stocks of large Internet companies listed on the Hong Kong stock market.
On July 5, Chinese Internet giant Tencent Holdings Ltd. (00700.HK) recorded the largest daily outflows through southbound trading, with net selling under the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect at 3.98 billion Hong Kong dollars and 3.46 billion Hong Kong dollars respectively.
Apart from July 5, Tencent Holdings Ltd., which was heavily held by 516 publicly-offered funds in the first quarter, encountered net selling of 3.31 billion Hong Kong dollars, 1.01 billion Hong Kong dollars, 2.16 billion Hong Kong dollars, and 2.79 billion Hong Kong dollars on July 2, July 6, July 7 and July 8, respectively.
Similarly, Chinese food delivery giant Meituan (03690.HK) incurred net selling of 1.44 billion Hong Kong dollars, 1.79 billion Hong Kong dollars and 2.09 billion Hong Kong dollars on July 2, July 5 and July 8.
Previously in the first quarter, publicly-offered funds once built up overweight positions of Meituan H-shares in excess of 10 billion yuan.
Compared with the past, performances of Internet giants' stocks were less gratifying by far this year, which may result from the overall weak morale of H-share market, said Jia Peng, fund manager with Yinhua Fund Management Co., Ltd.
Over a longer period, however, stock prices of these Chinese Internet companies may be optimistic after weathering certain corrections as they generally boast good commercial mode, large customer basis, and relatively steady competitive advantages in many areas. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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