Group 1: Market Overview - Recent market pullback primarily due to internal and external expectation adjustments, with the Hang Seng Index down 4.5% from its recent peak, compared to a 2.3% decline in the CSI 300[3] - External factors, such as rising US Treasury yields (up to 4.4%) and a strengthening US dollar (breaking the 100 mark), have exerted greater pressure on Hong Kong stocks compared to A-shares[5] - Southbound capital inflow surged to a net inflow of HKD 59 billion, marking the highest weekly inflow since April 11, 2025[6] Group 2: Investment Strategy - Emphasis on sectors with improving sentiment and low valuations, particularly in technology, gaming, and e-commerce leaders[2] - Recommended to focus on stocks with reasonable valuations and improving fundamentals, especially in the innovative pharmaceutical and non-bank financial sectors[7] - The report suggests a tactical approach centered around upcoming mid-year earnings reports, with a focus on companies expected to deliver strong earnings[7]