Core Viewpoint - The expectation of a Federal Reserve interest rate cut has led to a significant increase in Chinese assets, with the Nasdaq Golden Dragon China Index rising by 0.87% overnight, and notable gains in companies like Li Auto and Bilibili exceeding 6% [1]. Group 1: Market Trends - Overseas active funds have returned, with EPFR data showing a net inflow of $6.402 million into Hong Kong stocks and ADRs as of September 10, marking a return after five weeks [2]. - The Hong Kong Technology 50 ETF (159750) has seen a net inflow of 117 million yuan over the past 20 days [3]. - The Hang Seng Index has increased by 30% this year, attracting widespread attention, but global stock markets are generally rising due to the depreciation of the dollar and falling oil prices [3]. Group 2: Financial Conditions - Global financial liquidity is expected to remain loose, driven not only by the anticipated Fed rate cut but also by coordinated global fiscal and monetary policies and deregulation in the U.S. financial sector [3][16]. - The Hong Kong stock market, as an offshore RMB asset, benefits from abundant global liquidity and the return of foreign capital [16]. Group 3: Sector Performance - The Hong Kong Technology Index (CNY) covers 50 large-cap, high R&D investment, and high revenue growth technology companies across various sectors, including internet, new energy vehicles, innovative pharmaceuticals, electronics, and semiconductors [6]. - As of September 12, 2025, the Hong Kong Technology Index has a latest valuation of 23.87 times PE, which is at the 13.82% historical percentile [9]. Group 4: Investment Insights - Analysts suggest that while the Fed's rate cut may benefit the Hong Kong stock market in the short term, the medium-term growth will depend on the recovery of corporate fundamentals [16]. - There is a notable increase in incremental funds favoring leading technology and internet stocks, with a focus on individual stock logic [16].

Group 1 - Meituan's food delivery business maintained its leading position in Q3, but the average order value declined. The instant retail market is projected to exceed 2 trillion yuan by 2030, while the on-site travel and accommodation sector remains stable. New businesses are contracting domestically but expanding overseas [1] - Kuaishou's e-commerce reported a GMV growth of 17.6% year-on-year for Q2 2025, with private domain transaction efficiency being over four times that of public domain. AI tools have improved product card conversion rates by 20%, and the Double Eleven promotion is set to launch on October 7 [1] - There are rumors that Alibaba and other platforms may significantly increase capital expenditures, with Q4 infrastructure potentially catching up and AIDC tenders expected to be densely issued [1] Group 2 - For domestic investors, Hong Kong stocks are relatively inexpensive compared to A-shares. Since May, the AH premium has decreased from 134 to 119, indicating a reasonable valuation given the current exchange rate. There is potential for further narrowing of the AH premium amid the appreciation of the yuan and the weakening of the dollar [1] - For overseas investors, Hong Kong stocks still offer value. Despite the Hang Seng Index rising by 30%, global financial conditions remain loose due to the depreciation of the dollar and falling oil prices, benefiting Hong Kong stocks as offshore RMB assets. The PBROE framework indicates that Hong Kong stocks are at a mid-range level of value [2]

Group 1 - The core viewpoint is that Hong Kong stocks remain attractive in terms of value, despite the significant rise in the Hang Seng Index this year, which has increased by 30% [2] - The AH premium has decreased from 134 to 119 since May, reaching its lowest level in five years, indicating that Hong Kong stocks are not significantly overvalued [1] - The Hang Seng Technology Index has surpassed the 6000-point mark, with expectations of a "catch-up" rally due to continuous inflows from southbound funds and the potential initiation of a new interest rate cut cycle in the U.S. [2] Group 2 - The market is seeing a positive trend in sectors such as technology, lithium batteries, and automotive stocks, with notable gains in companies like NIO and Li Auto [1] - The ongoing policies against "involution" and the rapid iteration of AI models are expected to support a valuation reconstruction for the Hang Seng Technology Index [2] - Investors without a Hong Kong Stock Connect account can consider the Hang Seng Technology Index ETF (513180) to gain exposure to core Chinese AI assets [2]