Group 1 - The core topic of discussion in the financial sector is the recent interest rate cut by the Federal Reserve, which has led to a significant influx of capital into Hong Kong instead of emerging markets [1][4] - The Federal Reserve's interest rate policy acts as a global financial guide, and the current rate cut is seen as the beginning of a potential downward trend in U.S. interest rates, possibly falling below 3% [6][4] - Despite the rate cut, the U.S. attracted $1.04 trillion in foreign capital in 2024, the fourth highest on record, primarily due to the strong performance of the U.S. stock market, with the S&P 500 index rising by 23.3% [6][4] Group 2 - International capital prefers Hong Kong over mainland China due to its superior liquidity and ease of capital exit, despite the mainland market's growth [10][12] - In 2024, net capital inflow from the mainland to Hong Kong exceeded 785 billion HKD, indicating that global funds are using Hong Kong as a gateway to position themselves in the mainland market [12][10] - The local pension fund in Hong Kong saw its lowest inflow since 2021, with a significant portion of funds directed towards U.S. stock funds, highlighting Hong Kong's role as a financial intermediary [12][10] Group 3 - The influx of funds into Hong Kong reflects a rational assessment of the global financial environment, where the Federal Reserve's rate cut signals a need for adjustment rather than easy profits [14][16] - Hong Kong serves as a strategic location for capital, allowing investors to mitigate currency risk while maintaining access to mainland assets through mechanisms like the Stock Connect [16][14] - The current situation in Hong Kong demonstrates its appeal as an international financial center, showcasing global confidence in China's long-term market potential [18][16]