Zhi Tong Cai Jing·2025-09-21 06:45Market Performance - The Hong Kong stock market showed a strong performance from September 15 to September 19, with the Hang Seng Index rising by 0.59% to 26,545.10 points, the Hang Seng Tech Index increasing by 5.09%, and the Hang Seng China Enterprises Index up by 1.15% [1] - Among the sectors, four industries rose while seven declined, with notable gains in industrials (up 6.08%), consumer discretionary (up 3.57%), and information technology (up 1.90%), while financials, utilities, and materials saw the largest declines [1] Liquidity Analysis - The average daily turnover on the Hong Kong Stock Exchange was HKD 347.12 billion, an increase of HKD 44.09 billion from the previous week, while the average short-selling amount decreased by HKD 1.91 billion to HKD 32.48 billion, representing 9.35% of the turnover [2] - Cumulative net purchases from southbound funds totaled HKD 36.85 billion, a decrease of HKD 23.97 billion from the previous week [2] Valuation and Risk Appetite - As of September 19, the Hang Seng Index had a PE ratio of 12.04 and a PB ratio of 1.23, both at the 86% and 89% historical percentiles since 2019, respectively [3] - The risk premium for the Hang Seng Index was 4.17%, which is -2.18 standard deviations from the 3-year rolling mean, placing it at the 4% historical percentile since 2010 [3] - The AH share premium index decreased to 117.11, at the 9% historical percentile since 2014 [3] Investment Outlook - The Federal Reserve announced a 25 basis point cut in the federal funds rate, marking the first rate cut of the year, which is expected to enhance market risk appetite [4] - Domestic economic indicators showed a year-on-year increase in industrial output of 5.2% and a retail sales growth of 3.4% in August, indicating a mixed economic environment [4] - Future investment recommendations include focusing on sectors with favorable policies such as AI, lithium batteries, and consumer services, as well as tourism-related sectors due to upcoming holidays [4]