Core Viewpoint - The Hong Kong technology stocks are experiencing unprecedented vitality, leading to a significant upward trend in the Hang Seng Tech Index, which has reached new historical highs, indicating the start of an exciting new era [1] Group 1: Market Performance - The Hang Seng Tech Index has set a new record, closing at 6635.30 points, marking a breakthrough past previous resistance levels and indicating a broad upward trend in technology stocks [1] - Kuaishou-W has shown remarkable performance, reaching a peak of 90.85 HKD, with a five-day increase exceeding 120% year-to-date [3] - Alibaba-W has also performed well, with a 4.29% increase to 184.60 HKD, accumulating over 120% growth this year [3] - Baidu Group has seen a 3.60% rise, closing at 138 HKD, with a five-day increase of 6.84% and a 20-day increase of 46.17% [3] Group 2: Capital Inflows - Southbound capital has been a significant driver of the technology stock rally, with continuous net inflows into the Hong Kong tech sector for 18 weeks [5] - Alibaba-W has been particularly favored, with substantial net purchases this week, reaching a historical high in shareholding [5] Group 3: Valuation and AI Investment - Analysts note that the valuations of Hong Kong internet giants are converging with their overseas counterparts, with Tencent and Meta, Alibaba and Google showing similar valuation levels [8] - The current phase is characterized by increased AI investments, which may impact short-term profits but are expected to drive stock prices based on AI potential and technological advancements [8] - Goldman Sachs emphasizes that Chinese tech stocks are undergoing a value reassessment due to strong performance and the emergence of local AI models, which have positively influenced investor sentiment [8] Group 4: Future Outlook - The next 12-36 months are seen as a critical window for valuation reconstruction in Hong Kong tech stocks, driven by the shift towards AI automation [12] - International investors are showing heightened interest in Chinese stocks, reaching the highest level since 2021, indicating a solid market confidence driven by fundamentals rather than just policy [12] - Companies heavily investing in AI, such as Alibaba, Tencent, and Kuaishou, are expected to lead the technology-driven transformation in the market [14]

Group 1: Market Performance - In March, global asset performance ranked as follows: commodities (2.62%) > global bonds (0.61%) > RMB (0.30%) > 0% > USD (-3.16%) > global stocks (-4.45%) [2] - The "Terrific 10" index of Chinese tech stocks increased by 58% from 2024 to March 2025, outperforming the "Magnificent 7" index of US tech stocks, which rose by 41% [3] - The A-share margin balance reached 2.55% of the A-share circulating market value, the highest since 2017 [5] Group 2: Economic Indicators - The correlation coefficient between the Russell 2000 index and the NFIB small business confidence index was 0.77 from 2016 to September 2024, indicating a close relationship [3] - Since October 2024, the NFIB small business confidence index has risen while the Russell 2000 index has underperformed the S&P 500 index [3] - The A-share industry rotation speed reached the 94th percentile of historical levels over the past 10 years as of March 2025 [8] Group 3: Investment Insights - 58% of global fund managers expect gold to be the best-performing asset in a scenario of comprehensive trade conflicts, followed by long-term US bonds (16%) and short-term US bonds (9%) [4] - The valuation of the "Magnificent 7" in the US shows a negative correlation with the actual yield of 10-year Japanese government bonds, indicating concerns over high valuations and liquidity [4] - The price of rebar has decreased by 13.8% since 2023, while copper prices have increased by 4.2%, reflecting differing demand in construction and manufacturing sectors [6]