The provided content does not contain any quantitative models or factors, nor does it include any related construction processes, formulas, or backtesting results. The report primarily focuses on the analysis of southbound trading flows in the Hong Kong stock market, industry participation, and sectoral net inflows. There is no mention of quantitative models, factors, or their performance metrics.

Core Viewpoint - Bank of China International believes that the Hong Kong Monetary Authority's sale of US dollars for Hong Kong dollars has a minimal impact on the Hong Kong stock market, as the funds are primarily risk-averse and focused on high-interest deposits [1] Group 1: Market Liquidity and Trading Volume - Hong Kong stock market liquidity remains abundant, with an average daily trading volume of HKD 262.9 billion in July 2025, representing a year-on-year increase of 167% [1] - As of August 6, the average daily trading volume for August so far is HKD 233.5 billion, still at historically high levels [1] Group 2: Market Predictions - Bank of China International forecasts that the Hang Seng Index will reach 27,500 points by the end of December this year, which corresponds to a projected price-to-earnings ratio of 12.3 times, a premium of 5% over the average projected price-to-earnings ratio over the past 20 years [1] Group 3: Southbound Trading - Southbound trading has recorded a net inflow of RMB 833.2 billion year-to-date, reflecting a year-on-year growth of 109.8% [1] - The bank predicts that the net inflow from mainland to Hong Kong southbound trading will reach RMB 1.2 trillion in 2025, surpassing RMB 744 billion in 2024 and RMB 289.4 billion in 2023 [1]