SINOLINK SECURITIES·2025-07-27 09:59Investment Rating - The report maintains an optimistic outlook on the Hong Kong stock market, particularly in sectors such as stablecoins, new consumption, and innovative pharmaceuticals [3][10]. Core Views - The overseas Chinese asset earnings season has begun, with a significant increase in risk appetite for Hong Kong and US-listed Chinese stocks, as active funds seek undervalued stocks with low price-to-book ratios [3][10]. - There is a sustained bullish outlook on virtual assets, including stablecoins, with traditional virtual asset exchanges expected to enter the traditional capital markets through IPOs, reverse mergers, and acquisitions [3][10]. - The potential risks for overseas Chinese assets remain, particularly concerning US-China tariff issues, necessitating close monitoring of global tariff negotiations [3][10]. Industry Situation Tracking Education - The Chinese education index fell by 0.82% during the period from July 21 to July 25, underperforming compared to major indices [11][21]. - Notable stock performances include Oriental Selection rising by 13.67% and New Oriental falling by 10.03% [11][21]. Luxury Goods - The S&P Global Luxury Goods Index increased by 2.75%, while the MSCI European Luxury Goods and Apparel Index rose by 2.52% during the same period [22][25]. - Key luxury stocks showed mixed results, with Samsonite up by 3.16% and Prada down by 1.94% [22][25]. Coffee and Tea - The Hang Seng Non-Essential Consumer Index rose by 1.30%, outperforming the Hang Seng Index [27][30]. - Notable stock performances include Haidilao up by 4.31% and various tea brands experiencing declines [27][30]. E-commerce - The Hang Seng Internet Technology Index increased by 1.86%, with Pinduoduo rising by 8.67% and Alibaba declining by 0.17% [30][31]. - The competitive landscape remains intense, with significant investments in logistics and marketing by leading platforms [30][31]. Streaming Platforms - The Hang Seng Media Index fell by 1.2%, underperforming compared to other indices [35][39]. - Key stocks like iQIYI and Tencent Music experienced varied performance, with iQIYI up by 2.04% and Tencent Music down by 4.45% [35][39]. Virtual Assets & Internet Brokers - As of July 25, the global cryptocurrency market cap reached $393.75 billion, with Bitcoin and Ethereum prices at $117,482 and $3,765, respectively [41][42]. - The report highlights the ongoing development of regulatory frameworks for virtual assets, with significant movements in the market [41][42]. Automotive Services - The Hang Seng Composite Index rose by 2.45%, with notable performances from companies like Zhongsheng Holdings up by 17.27% [49][50]. - The automotive service sector is witnessing growth, with new partnerships and service offerings emerging [49][50].