Core Viewpoint - The rise of DeepSeek has initiated a "revaluation of Chinese assets," extending beyond the tech sector to new consumption and innovative pharmaceuticals, which are leading the Hong Kong stock market this year [1]. Group 1: Investment Opportunities - International funds' allocation to China remains at historical lows, but there is a growing willingness among global investors to increase their exposure to Chinese assets [1]. - The consensus among industry experts is that both US and Chinese stock markets present investment opportunities this year, with Hong Kong stocks potentially outperforming A-shares [3]. - The MSCI China Index currently has a PE ratio of 11 and a PB ratio of 1.4, indicating that Hong Kong stocks are undervalued compared to the S&P 500 and Nasdaq [4]. Group 2: New Consumption Trends - The consumer sector in Hong Kong has gained more attention than the internet sector this year, with companies like Pop Mart, Mixue Group, and Laoputang being highlighted as key players [6]. - The rise of "self-consumption" reflects a shift in consumer preferences towards quality and high-end experiences, suggesting that companies targeting younger and lower-tier city consumers may have greater opportunities [6][8]. - High valuations in the consumer sector are driven by innovation and the ability to create new IP, rather than merely competing on price [6]. Group 3: Innovative Pharmaceuticals - The Chinese pharmaceutical industry is experiencing a resurgence after three years of stagnation, with global pharmaceutical companies seeking assets in key therapeutic areas [10]. - The Hong Kong healthcare sector has risen by 54% this year, with the Chinese biotech index up 68.6%, significantly outperforming the MSCI China Index [10]. - The trend of "licensing out" innovative drugs is expected to continue, driven by high-value overseas orders and improved geopolitical conditions [11][12].