Market Overview - On August 25, Hong Kong's three major indices collectively rose, with the Hang Seng Index increasing by 1.94% to 25,829.91 points, reaching a nearly four-year high [1] - The Hang Seng Tech Index rose by 3.14% to 5,825.09 points, while the National Enterprises Index increased by 1.85% to 9,248.00 points [1] - Notable stock performances included NIO rising over 15%, Alibaba up over 5.5%, Kuaishou up over 5%, Meituan up nearly 3.5%, and Tencent Holdings up nearly 2.5% [1] - The Hang Seng Tech Index ETF (513180) saw a significant increase of 4.2% [1] Southbound Capital - On August 25, southbound capital recorded a net outflow of 1.376 billion HKD; however, the cumulative net inflow for the year reached 955.45 billion HKD, significantly exceeding last year's total [2] U.S. Market Performance - U.S. stock indices closed lower overnight, with the Dow Jones down 0.77%, S&P 500 down 0.43%, and Nasdaq down 0.22% [3] - Notable declines included Merck dropping over 2% and Amgen falling over 1%, leading the Dow's decline [3] - Chinese concept stocks showed mixed results, with Daqo New Energy rising over 4% and Newegg falling over 15% [3] - The Hang Seng Index ADR fell, closing at 25,638.43 points, down 191.48 points or 0.74% compared to Hong Kong's close [3] Industry Highlights - As of August 22, the total market size of ETFs in China reached 4.97 trillion CNY, nearing the 5 trillion CNY mark, with over 100 ETF products exceeding 10 billion CNY in size [4] - Pinduoduo reported its Q2 2025 earnings, showing a 7% year-on-year revenue increase to 103.98 billion CNY, while adjusted net profit decreased by 5% to 32.71 billion CNY, both exceeding market expectations [4] - The National Press and Publication Administration announced that in August, 166 domestic games and 7 imported games received licenses, benefiting major companies like Tencent, NetEase, Bilibili, and others [4] Short Selling Data - On August 25, a total of 638 Hong Kong stocks were short-sold, with total short selling amounting to 40.985 billion HKD [5] - The top three stocks by short selling amount were Tencent Holdings at 3.172 billion HKD, Alibaba at 2.495 billion HKD, and Meituan at 1.939 billion HKD [5] Institutional Insights - According to the latest strategy from China Merchants Securities, changes in liquidity narratives may support a rebound in Hong Kong stocks, as recent increases in Hibor rates have stabilized, indicating a marginal improvement in liquidity conditions [6] - The institution believes that this improvement in liquidity is sufficient to support a phase of rebound in Hong Kong stocks, narrowing the gap with the rapidly rising A-shares [6] Hong Kong ETFs - The Hong Kong Consumption ETF (513230) focuses on e-commerce and new consumption sectors, which are relatively scarce compared to A-shares [7] - The Hang Seng Tech Index ETF (513180) includes core AI assets and encompasses technology leaders that are also relatively scarce compared to A-shares [8]