Group 1 - The article highlights a threefold logic driving the market: expectations of interest rate cuts, supportive policies, and performance-driven factors [1] - Federal Reserve Chairman Jerome Powell unexpectedly released dovish signals at the Jackson Hole conference, significantly strengthening the expectation of a rate cut in September, which accelerates capital inflow into emerging markets and improves liquidity in the Hong Kong stock market [1] - Shanghai has introduced new real estate policies, including reducing purchase restrictions and optimizing credit, further confirming the ongoing structural policy support that injects new catalytic momentum into the market [1] Group 2 - Despite the significant recovery in Hong Kong stock valuations, with the Hang Seng Index's forecast PE approaching the 80th percentile of the past seven years, the market still has upward support due to decreased external monetary policy uncertainty and increased internal policies aimed at reducing competition and supporting industries [1] - The article suggests focusing on technology leaders with strong performance certainty, cyclical sectors benefiting from policies, financial stocks, and commodities that benefit from the global liquidity shift [1]

Market Performance - The Hang Seng Index rose by 1.9% to 25,829 points, gaining nearly 500 points and approaching the 26,000 mark[1] - The Hang Seng Technology Index increased by 3.1%, closing at 5,825 points[1] - Market turnover reached HKD 369.6 billion, indicating strong bullish sentiment[1] Sector Highlights - Major technology stocks led the market rally, with Baidu and NetEase both rising over 6%, while Alibaba and Kuaishou gained over 5%[1] - Real estate stocks performed strongly due to new policies in Shanghai aimed at optimizing purchasing limits and credit, boosting market confidence[1] - The automotive sector saw a significant rise, with Dongfeng Group's stock increasing by 54% following a restructuring announcement[4] Economic Indicators - New home sales in 30 major cities fell by 12.9% year-on-year, indicating a continued decline in the real estate market[3] - The average coal price dropped by 15.3% to HKD 149 per ton, impacting the coal sector's profitability[10] Policy and Market Outlook - The market is driven by expectations of interest rate cuts, supportive policies, and strong earnings, particularly in technology and cyclical sectors[2] - The Hang Seng Index's price-to-earnings ratio has recovered to nearly the 80th percentile of the past seven years, suggesting potential for further gains[2] Company Performance - WuXi Biologics reported a 16.1% increase in revenue to RMB 9.95 billion, with a 56.0% rise in net profit, driven by strong demand for antibody-drug conjugates[7] - Yancoal Australia saw a 61.2% decline in net profit to AUD 16 million, attributed to lower coal prices and logistical challenges[10]