Market Overview - The Hong Kong stock market opened positively on May 2, with all three major indices closing higher. The Hang Seng Index rose by 1.74% to 22,504.68 points, the Hang Seng Tech Index increased by 3.08% to 5,244.06 points, and the Hang Seng China Enterprises Index gained 1.92% to 8,231.04 points [3]. Economic Context - The Chinese Ministry of Commerce noted ongoing discussions with the U.S. regarding tariff negotiations, indicating a willingness from the U.S. side to engage in talks [3]. - According to Everbright Securities, the Hong Kong stock market is currently in a phase of "valuation trough" and "policy window," with the Hang Seng Index approximately 12% below its ten-year valuation mean and the Hang Seng Tech Index's price-to-earnings ratio at a historical low of 8% [3]. Sector Performance - The technology sector saw a broad increase, with notable gains from companies such as Xiaomi (up over 6%), Alibaba and JD.com (both up over 3%), and Tencent, Meituan, and Kuaishou also closing higher [5]. - The new energy vehicle (NEV) sector experienced significant growth, driven by strong delivery numbers for April. Companies like Li Auto, Xpeng, and Leap Motor reported year-on-year delivery increases of 31.6%, 273%, and 173%, respectively [8]. Company Highlights - WuXi Biologics reported a revenue of approximately 9.655 billion yuan for Q1 2025, a year-on-year increase of 20.96%, with a net profit of about 3.672 billion yuan, up 89.06% [8]. - The new tea beverage sector also performed well, with Nayuki's Tea rising over 8% amid ongoing public offerings [9]. Stock Movements - Meilan Airport's stock surged by 7.71% following the announcement of a major share transfer, with the controlling shareholder transferring 50.19% of the company’s shares for a total of 2.52 billion HKD [14].

Core Viewpoint - The attractiveness of the Chinese capital market to global investors is continuously increasing, with significant capital inflows observed from various regions, particularly in technology sectors [1][9]. Group 1: Global Investment Trends - Recent data shows that global capital is actively participating in the revaluation of Chinese assets, with a notable increase in trading volumes from South Korean investors, which nearly doubled in February [2][5]. - The trend of capital flowing from U.S. tech stocks to A-shares and Hong Kong tech stocks is becoming evident, as investors seek new valuation opportunities [3][14]. - Major financial institutions like Goldman Sachs, UBS, and Morgan Stanley have released optimistic reports regarding the future performance of the Chinese stock market [2][14]. Group 2: Performance Metrics - In February, South Korean investors' trading volume in Chinese stocks surged to $782 million, marking the highest level since August 2022, significantly surpassing investments in European and Japanese markets [6]. - The MSCI China Index rose by 11.8%, the Hang Seng Index by 13.4%, and the Hang Seng Tech Index by 17.9% in February, while the MSCI Korea Index fell by 0.8% [7][14]. Group 3: Structural Changes and Investor Sentiment - The structural characteristics of the Korean stock market, dominated by companies like Samsung Electronics, contrast with the global preference for downstream AI application companies, making Hong Kong tech assets more appealing for Korean investors [8]. - There is a notable shift in foreign capital, with an estimated inflow of approximately 20 billion yuan into A-shares and around 18 billion Hong Kong dollars into Hong Kong stocks in the first two months of the year [10][11]. Group 4: Future Outlook - Analysts predict that foreign investment in Chinese stocks will continue to increase due to the low valuation of Chinese assets and supportive government policies aimed at economic growth [17]. - The potential for significant returns is highlighted by the expectation that AI applications could enhance earnings per share by 2.5% annually over the next decade, potentially attracting over $200 billion in capital [15][17].