Market Overview - The Hong Kong stock market experienced a volatile upward trend from June 1 to June 29, with the Hang Seng Index rising from 23,289.77 points on May 30 to a peak of 24,533 points on June 25, marking a 5.3% increase [1] - The Hang Seng Tech Index also saw a rise of 3.31% during the same period [1] Southbound Capital Flow - Southbound capital has become a significant driving force, with total trading volume reaching 2.28 trillion HKD by June 27, surpassing the total for May, which was 1.80 trillion HKD [1] - The net inflow of southbound capital amounted to 750.31 billion HKD, a substantial increase of 108% compared to the same period in May [1] - Year-to-date net inflow into the Hong Kong stock market from southbound capital has exceeded 725.9 billion HKD, setting a historical record for the same period [1] Sector Performance - There has been a notable shift in capital allocation strategies, with a significant increase in investment in the pharmaceutical sector and enthusiasm for innovative businesses [1] - The technology sector displayed a mixed performance, with companies like SMIC, Meituan, and BYD receiving net inflows, while Tencent, Xiaomi, and Alibaba faced significant outflows [4] Active Stocks - The most actively traded stocks in June included Xiaomi Group-W, Alibaba-W, and Meituan-W, with trading volumes of 1,029.26 billion HKD, 786.44 billion HKD, and 645.33 billion HKD respectively [2][3] - Notably, Guotai Junan International surged by 167.26% after receiving approval for a virtual asset trading license, with a significant increase in holdings [2] Structural Changes - The Hong Kong Monetary Authority intervened in the market by selling USD and buying 94.2 billion HKD, which may impact liquidity and capital flow [5] - The liquidity gap between Hong Kong and A-shares has narrowed significantly this year, with the rolling 20-day turnover rate of the Hang Seng Index recently matching that of the CSI 300 [6] - Southbound capital is increasingly influencing the market, particularly in small-cap and dividend-paying stocks, with a notable focus on traditional sectors such as finance, energy, and telecommunications [6]