Core Viewpoint - The Hong Kong non-bank financial sector, represented by the Hong Kong Stock Connect Non-Bank Financial Theme Index, has shown significant upward momentum, outperforming other popular sectors like technology and consumption [1][2]. Group 1: Index Performance - As of July 9, the Hong Kong Stock Connect Non-Bank Financial Index has increased by 37.03% over the past three months and 70.54% over the past year, surpassing the performance of the Hang Seng Technology and Consumption indices [1]. - Over a three-year period, the index has risen by 22.32%, again outperforming other indices in technology, consumption, and innovative pharmaceuticals [1]. Group 2: Index Composition - The index comprises up to 50 listed companies within the Hong Kong Stock Connect that meet the non-bank financial theme criteria, with insurance companies making up 63.10% of the index and securities and brokerage firms accounting for 10.92% [3]. - The top ten constituents of the index are predominantly insurance companies, indicating a dual-track layout of "insurance + brokerage" that benefits from both insurance asset recovery and increased capital market activity [6][7]. Group 3: Industry Fundamentals - The insurance and brokerage sectors have shown continuous improvement in fundamentals this year, contributing to the index's strong performance [8]. - The insurance sector has seen a reduction in new liability costs due to various policy measures, while the brokerage sector has benefited from increased market activity, with an average daily trading volume of nearly 250 billion HKD from January to May, a 120% year-on-year increase [8]. Group 4: Valuation Advantages - As of July 9, the index's price-to-earnings (P/E) ratio is 8.60, which is significantly lower than the historical average of 18.10%, indicating a favorable valuation compared to other popular indices that often have P/E ratios in the 20s or 30s [9].