Group 1 - The Hong Kong stock market showed mixed performance on July 31, with significant declines in gold stocks and fluctuations in large tech stocks, while automotive stocks continued to decline [1] - The Hang Seng Technology Index ETF (513180) experienced volatility, with notable gains in stocks like Kingdee International, Kuaishou, and SMIC, while Meituan and BYD led the declines, with Kuaishou rising over 7% [1] - CITIC Securities highlighted a "water buffalo" market characteristic, suggesting an increased allocation to the Hang Seng Technology and Sci-Tech sectors, anticipating a rebound in the Sci-Tech board due to supportive policies and the upcoming World Artificial Intelligence Conference in 2025 [1] Group 2 - As of July 30, the latest valuation (PETTM) of the Hang Seng Technology Index ETF (513180) was 21.71 times, indicating it is in a historically low valuation range, below 78% of the time since its inception on July 27, 2020 [2] - The Hang Seng Technology Index is characterized by high elasticity and growth potential, suggesting significant upward momentum [2] - Investors without a Hong Kong Stock Connect account can access Chinese AI core assets through the Hang Seng Technology Index ETF (513180) [2]

Market Overview - The A-share market has shown strong performance recently, with the Shanghai Composite Index breaking the 3600-point mark, driven by financial stocks and increased market liquidity [1][2] - As of July 28, the Shanghai Composite Index reached a high of 3606.27 points, closing at 3597.94 points, up 0.12%, while the Shenzhen Component Index and the ChiNext Index also saw gains [1] Market Drivers - The current market rally is primarily driven by liquidity and fundamentals, contrasting with the previous policy-driven surge [2] - Analysts suggest that the market is in a "bull market second phase," indicating continued growth potential, with many industry leaders having doubled their stock prices since September 2024 [3] Sector Performance - There is a rotation among industry sectors, with previously strong banking stocks experiencing profit-taking, while growth sectors such as innovative pharmaceuticals and AI are on the rise [2] - Beneficiary sectors of economic transformation, including smart driving, robotics, and drones, are expected to rebound in the second half of the year [2] Investment Strategies - Short-term focus should be on sectors with favorable mid-year performance, while long-term strategies should emphasize three main lines: domestic consumption, technological self-reliance, and dividend stocks [4] - Specific sectors to watch include high-dividend low-valuation blue-chip stocks, technology growth areas, and consumer recovery sectors [4] - Current market conditions suggest that holding stocks may be a more effective strategy, with attention on sectors like non-ferrous metals, communications, innovative pharmaceuticals, military industry, and gaming [4]