Core Viewpoint - The Hong Kong stock market has seen significant inflows and upward trends, with the Hang Seng Index and Hang Seng Tech Index both rising over 2.8% in July, driven by a combination of domestic and foreign investments [1] Group 1: Market Performance - In July, the Hong Kong Stock Connect saw an inflow of 125.2 billion RMB, an increase of over 70% compared to June, indicating a strong liquidity environment [1] - The Hang Seng Index and Hang Seng Tech Index both experienced substantial gains, with the Hang Seng Tech Index rising by 5.8% [1] Group 2: Investment Opportunities - According to Guosen Securities, Hong Kong stocks remain in a reasonable valuation range compared to A-shares, with a focus on sectors such as low-valuation internet and AI leaders, innovative pharmaceuticals, resources benefiting from "anti-involution," new consumption with strong fundamentals, and improving non-bank financial institutions [1] - Specific ETFs like the Hong Kong Stock Connect Tech ETF (159262), Innovative Pharma ETF (513120), Consumption ETF (159699), and Non-bank Financial ETF (513750) are highlighted as effective tools for investors to capture opportunities in these sectors [1] Group 3: ETF Performance - The Hong Kong Stock Connect Tech ETF (159262) has outperformed the Hang Seng Tech Index since its launch, rising over 13% compared to the index's 5.8% increase, with a TTM P/E ratio of 23.5, positioned at the 52nd percentile historically [2] - The Innovative Pharma ETF (513120) has seen a remarkable year-to-date return of over 102%, with a current size exceeding 16.5 billion RMB, making it the largest innovative pharma ETF in the market [2] - The Consumption ETF (159699) tracks the Hang Seng Consumption Index with a P/E ratio of 18.91, providing a balanced exposure to consumer trends, particularly among Generation Z [3] - The Non-bank Financial ETF (513750) has attracted significant investment, with a one-year return of 92.58% and a P/E ratio of approximately 10, indicating a strong valuation advantage [3] Group 4: Market Outlook - The combination of valuation recovery and ample liquidity in the Hong Kong market is expected to drive continued interest in technology, pharmaceuticals, new consumption, and non-bank financial sectors [4] - The ongoing "anti-involution" policies and rising global inflation expectations are likely to enhance the medium to long-term investment value of the technology and pharmaceutical sectors [4]

Group 1 - The Hong Kong stock market experienced a significant rise in July, with the Hang Seng Index and Hang Seng Tech Index both increasing by over 2.8%, and the Hang Seng Stock Connect rising by 4.7% [1] - There has been a resonance inflow of both domestic and foreign capital into the Hong Kong stock market this year, leading to a sustained liquidity environment [1] - According to Guosen Securities, Hong Kong stocks remain in a reasonable valuation range compared to A-shares, with a focus on five key investment directions: undervalued internet and AI leaders, innovative pharmaceuticals, resources and commodities benefiting from anti-involution, strong fundamentals in new consumption, and improving performance in non-bank financial institutions [1][2] Group 2 - The Hong Kong Innovative Pharmaceutical ETF (513120) has seen a year-to-date return exceeding 100% as of July 29, with its latest scale surpassing 16 billion yuan, making it the largest innovative pharmaceutical ETF in the market [2] - The Hang Seng Consumption ETF (159699) tracks the Hang Seng Consumption Index, including 50 leading Hong Kong consumer stocks, and offers a balanced distribution that aligns with the consumption trends of Generation Z [2] - The Hong Kong Non-Bank Financial ETF (513750) is the only ETF tracking the Hong Kong non-bank financial index, with significant holdings in major insurance companies and has seen continuous net inflows, reaching a scale of 12.5 billion yuan and a year-to-date return of over 40% [2] Group 3 - Fund professionals believe that the four ETFs covering technology, innovative pharmaceuticals, new consumption, and non-bank financial sectors provide investors with a convenient tool for a diversified exposure to Hong Kong stock opportunities [3] - Institutional analysis highlights the long-term allocation value of the Hong Kong technology and pharmaceutical sectors, especially with the deepening of anti-involution policies and rising global inflation expectations [3]