Shanghai Securities·2025-06-18 10:09Market Overview - The Hong Kong stock market indices showed mixed performance, with the Hang Seng Index rising by 0.42%, the Hang Seng China Enterprises Index increasing by 0.30%, while the Hang Seng Technology Index fell by 0.89% during the week of June 9-13, 2025 [6][11] - The Hang Seng Index's current Price-to-Earnings (PE) ratio is 10.40, which is around the 55th percentile since January 1, 2007, and the Price-to-Book (PB) ratio is 1.12, at the 40th percentile during the same period [13][16] Economic Indicators - In May 2025, China's Consumer Price Index (CPI) decreased by 0.2% month-on-month and by 0.1% year-on-year, while the Producer Price Index (PPI) fell by 0.4% month-on-month and by 3.3% year-on-year, indicating a worsening in producer prices [7][10] - The core CPI, excluding food and energy, increased by 0.6% year-on-year, reflecting a slight improvement in underlying inflation trends [7][10] Investment Recommendations - The report suggests focusing on high-end manufacturing sectors such as AI computing power, innovative pharmaceuticals, and semiconductor industries, as these areas are expected to benefit from improved supply-demand dynamics and government measures to boost consumption [6][10]