智通财经网·2025-08-27 01:34Core Viewpoint - The Hong Kong stock market shows signs of recovery with the Hang Seng Index and Hang Seng Tech Index experiencing gains, driven by positive movements in major electric vehicle companies like NIO, Li Auto, and BYD [1] Market Outlook - Despite significant valuation recovery in Hong Kong stocks, with the Hang Seng Index's forecast PE reaching nearly the 80th percentile of the past seven years, external monetary policy uncertainties have decreased, and internal policies supporting industries are being strengthened, providing upward support for the market [1] - The expectation of a rate cut in September is likely, and given that Hong Kong stocks have significantly retraced their excess relative to A-shares, the A-H market is expected to realign, with changes in corporate earnings becoming a key driver of performance differences between the two markets [1] - Foreign capital is anticipated to continue increasing its allocation to the Chinese market due to factors such as easier overseas liquidity conditions and improved domestic fundamentals, with the RMB having potential for appreciation [1] - It is important to note that the significance of foreign capital in the Hong Kong stock market has decreased, with southbound capital accounting for over 40% of trading in interconnectivity stocks, making the sustainability of future inflows a critical focus [1]