Core Viewpoint - The recent "624" rally is reminiscent of last year's "924" event, with Hong Kong's tech index outperforming the Hang Seng Tech index significantly since April 2023 [1][4]. Performance Comparison - Since the "924" rally, the Hong Kong tech index has increased by 49.75%, outperforming the Hang Seng Tech index by nearly 6 percentage points; since the low on April 8, 2023, it has risen by 21.54% [3][4]. - The Hang Seng Tech index has shown a growth of 20.37% since April 8, 2023, and 43.26% since September 24, 2022 [4]. Sector Analysis - The Hong Kong tech index benefits from a larger number of constituent stocks (50) compared to the Hang Seng Tech index (30), which contributes to its superior performance [4]. - The strong performance of innovative pharmaceuticals within the Hong Kong tech index, which accounts for 8.5% of the index, has also contributed to its outperformance [4]. Investment Recommendations - For investors looking to invest in Hong Kong stocks, the Hong Kong tech index should be prioritized over the Hang Seng Tech index [5]. - The Hong Kong Tech 50 ETF (159750) has gained 0.69% recently and is a popular choice among investors, offering T+0 trading convenience [5][6]. ETF Performance - The Hong Kong Tech 50 ETF has increased by 50.15% since the "924" rally and 12.78% since April 8, 2023, with multiple recent highs [6][8]. - The Hong Kong Dividend Low Volatility ETF (520550) has also performed well, with a 17.69% increase since the "924" rally and 19.86% since April 8, 2023, achieving 35 new historical highs this year [6][8].

Group 1 - The market experienced a slight rebound last week, with an average daily trading volume of approximately 12,089 billion yuan, despite overall trading activity remaining subdued [1] - The direct communication between the leaders of China and the United States after trade frictions has positively impacted the market, particularly benefiting export-oriented sectors [1] - Growth stocks outperformed value stocks, with small-cap stocks leading large-cap stocks; sectors such as telecommunications, non-ferrous metals, and electronics performed well, while household appliances, food and beverages, and transportation lagged [1] Group 2 - Domestic exports remain resilient, but real estate sales are weakening rapidly, compounded by the exhaustion of subsidies for automobiles and home appliances, leading to a lack of support for domestic demand [2] - The SCFI index has shown an upward trend, indicating a recovery in external demand, while real estate sales for new and second-hand homes have significantly declined [2] - The automotive industry is facing tightening consumer subsidy policies, which may further pressure domestic demand [2] Group 3 - Two key events are expected to significantly impact asset prices: the potential delay in the U.S. interest rate cut path and the possibility of the "Great Beautiful Plan" proposed by Trump passing, which includes tax cuts and adjustments to subsidy policies [3] - The recent communication between the U.S. and Chinese leaders emphasizes the need for enhanced cooperation across various sectors, which could alleviate some pressures on high-tech industries in China [3] Group 4 - The divergence between fundamental expectations and macroeconomic expectations remains a key theme in the market, with limited upward and downward potential [4] - The market's downside risks are primarily driven by deteriorating fundamentals and declining corporate profits, while progress in tariff negotiations may mitigate these negative impacts [4] - Future market movements may depend on exceeding expectations in fundamentals, liquidity, or industry catalysts [4] Group 5 - The investment strategy suggests a "barbell" approach, focusing on high-dividend sectors post-dividend payouts and gold sectors due to ongoing central bank purchases [5] - In a macroeconomic easing period, technology growth sectors are expected to yield higher returns, with specific attention to commercial aerospace, autonomous driving, domestic computing power, consumer electronics, and robotics [5]

Group 1 - The core view indicates that Asian currencies are strengthening against the US dollar, suggesting a shift away from the "American exceptionalism" narrative, with non-US assets showing no significant systemic risks in the short term [1][2][3] - The report recommends a "barbell" strategy ahead of the June FOMC meeting, advocating for long-duration bonds and high-dividend stocks while also exploring opportunities in technology sectors such as semiconductors, innovative pharmaceuticals, and battery storage [1][6][12] - The report highlights that the A-share market is expected to see a slight rebound, driven by strong performance in small-cap technology stocks and consumer sectors, while maintaining a focus on high-dividend and cash flow stocks [44][52][53] Group 2 - The report notes that the US stock market is currently benefiting from retail fund inflows and strong earnings from technology stocks, with a recommendation to consider shorting the dollar before the June FOMC meeting [2][40][41] - In the Japanese market, the ongoing negotiations regarding US-Japan tariffs are a key focus, with expectations that Japan may sell US bonds to strengthen its negotiating position [41][44] - The report emphasizes the importance of maintaining a balanced portfolio in the Hong Kong market, with a focus on sectors such as internet, consumer, and healthcare, while noting a slowdown in southbound capital inflows [46][50][51] Group 3 - The report suggests that the current market environment favors high-dividend and low-volatility stocks, particularly in sectors like banking, utilities, and infrastructure [7][53] - Small-cap stocks are highlighted as having a stronger performance outlook due to declining short-term interest rates, with a cautionary note on potential trading congestion risks in the small-cap index [54][55] - The report identifies key sectors for investment, including banking, electric utilities, innovative pharmaceuticals, robotics, semiconductor materials, and military low-altitude economy [55][56] Group 4 - The report indicates that gold is currently in a short-term oversold condition but maintains a long-term upward trend as a hedge against global monetary expansion [56][57] - The ETF strategy shows a strong performance with a 31.19% absolute return since the beginning of 2024, outperforming the benchmark indices [58][59] - The report reviews the performance of various strategies, noting that high-dividend stocks significantly outperformed the market, while technology sectors like robotics and semiconductors also showed strong gains [60][61]