Ge Long Hui·2025-09-04 02:53Group 1 - The Hong Kong stock market has experienced a significant influx of capital from mainland China, with net purchases exceeding 1 trillion HKD as of September 3, marking a record high since the launch of the Stock Connect program [1] - Southbound trading has reached a peak in its share of the main board's trading volume, indicating strong market activity [1] - The technology sector, particularly AI and hard tech, has emerged as a standout performer, with Alibaba's recent impressive earnings report boosting investor confidence in Hong Kong's tech leaders [3] Group 2 - As of September 3, southbound funds have consistently net bought Alibaba for nine consecutive days, totaling 16.828 billion HKD [3] - The Hong Kong Technology 50 ETF (159750), which includes over 10% of Alibaba, has attracted significant investment, raising 195 million HKD in the past 20 trading days [3] - The ETF tracks the Hong Kong Technology Index and covers major Chinese tech giants, with these ten companies accounting for over 70% of the index's weight [3] Group 3 - The Hong Kong market showed signs of fatigue from June to August, but conditions began to improve in September [6] - Factors contributing to this change include the Hong Kong dollar's stability, a return to normal interest rates, and a potential recovery in the stock market post-earnings season [7] - The Chinese tech sector is experiencing a breakthrough, particularly in AI commercialization, with major companies like Alibaba and Tencent leading the way [7] Group 4 - The expectation of a potential interest rate cut by the Federal Reserve in the fourth quarter could alleviate short-selling pressure on Hong Kong stocks, making the market more attractive for foreign capital [7] - The current valuation of Hong Kong tech stocks is at historical lows, with a PE ratio of 22.62, indicating high cost-effectiveness for investors [7] - The ongoing accumulation of positions in the Hong Kong Technology 50 ETF and core assets like Alibaba and Tencent suggests that informed investors are already taking action [9]