港股与A股联动性正快速增强。 历史上，港股与美股走势相关性更强。历史上港股走势与美股更相关，1970年至今恒生指数与标普500走势基本一致，港股 与美股的联动性在美股大跌时尤为突出。但2020年以来港股与美股联动性逐步减弱，尤其2021年、2023年两者走势甚至完全相悖。与之相对的，港股与A股 联动性的不断增强。从指数走势看，2002年以来恒生指数与沪深300也存在一定联动，但在2020年以前，两者相关性基本弱于恒生指数与标普500之间的相 关性，而2020年以来港股与A股相关性较以往明显增强。港股与A股、美股联动关系变化或反映港股投资环境正经历新变化。 港股流动性对海外依赖度减弱。 2020年以来估值对港股涨跌幅贡献增强，恰与港股A股联动性增强的时点吻合。由于联系汇率制度且外资占比高，过去港股 流动性受海外因素影响大。但2020年以来，由于受地缘政治、港币套息交易及港股性价比变化影响，外资占比持续下降，港股流动性对海外依赖逐步减弱。 中概股回流或也削弱了港股与美股的中期联动性。与此同时，基于港股价格优势、标的稀缺性与套利需求，内资加速流入港股，使港股流动性与内地关联加 深。港股开始更大程度反映内地资金行为逻 ...

Group 1 - The Hong Kong Stock Exchange (HKEX) has implemented a significant market reform, adjusting the minimum price fluctuation units for stocks priced between 10 to 50 HKD, effective August 4 [2][3] - The minimum price change for stocks priced between 10 to 20 HKD has been reduced from 0.02 HKD to 0.01 HKD, while for those priced between 20 to 50 HKD, it has decreased from 0.05 HKD to 0.02 HKD, representing reductions of 50% and 60% respectively [2] - This reform aims to lower trading costs, enhance trading efficiency, and improve market competitiveness, making it easier for orders to be executed at expected prices [2][3] Group 2 - The reform will be implemented in two phases, with the second phase set to begin next year, targeting securities priced between 0.5 to 10 HKD, which will see a further 50% reduction in minimum price fluctuation units [3] - Market participants believe that this change will facilitate order matching for retail investors and reduce the premiums they pay for immediate execution [4] - However, there are concerns that traders relying on small price differences for arbitrage may be forced out of the market, potentially affecting market depth [5][7] Group 3 - Most brokerage firms have indicated that no major adjustments to their systems are necessary to accommodate the new pricing structure, as current systems can support three decimal places for pricing [8] - The Hong Kong stock market has experienced volatility, with mid-year earnings reports expected to be a focal point in August, particularly in the last week of the month [8] - As of August 4, the Hang Seng Index has seen a slight increase of 0.42% [10] Group 4 - Analysts from CITIC Securities project a 12.3% growth in earnings for the Hang Seng Tech Index constituents [11] - There are significant discrepancies in earnings expectations for the new energy vehicle and semiconductor sectors, indicating higher potential volatility, while the consumer electronics sector is viewed as a more stable choice [12] - Guosen Securities expresses an optimistic outlook for the Hong Kong stock market, suggesting a "synchronized easing" between domestic and foreign capital, with valuations remaining reasonable compared to A-shares [12]

Macro Overview - The article highlights a rebound in inflation expectations in the US, with both 5-year and 10-year inflation expectations rising in August, indicating a marginal improvement in investor confidence [2][3] - Major economic indicators show mixed results: initial jobless claims increased, ISM non-manufacturing PMI declined, and durable goods orders fell month-on-month in June [2] - In Europe, the Eurozone investment confidence index turned negative again, while retail sales showed a year-on-year increase in June, and PPI saw a slight rebound [2] Policy Insights - The US labor market is showing signs of slowing down, creating a dilemma for the Federal Reserve regarding monetary policy; the European Central Bank is not expected to cut interest rates in the short term; the Bank of Japan is maintaining its current interest rates but may exit its wait-and-see mode by the end of the year [3] Hong Kong Market Liquidity - The article estimates that the total financing scale for IPOs and refinancing in Hong Kong could reach nearly HKD 300 billion this year, with IPO financing expected to be around HKD 1,500 billion [6] - The peak of stock unlocks in Hong Kong occurred in Q2 2025, with a total unlock amount of HKD 444.8 billion, accounting for 50% of the annual total; the pressure for significant reductions in holdings is limited moving forward [7][8] - The article anticipates that net inflows from southbound trading could exceed HKD 1.2 trillion this year, providing a substantial liquidity source for the Hong Kong market [9]

Group 1 - Southbound funds recorded a net purchase of 201.84 billion HKD on July 25, bringing the total net purchase for the year to 8200.28 billion HKD, surpassing last year's total of 8079 billion HKD and the combined total from 2022 to 2023 [1][3] - This marks the 25th consecutive month of net purchases of Hong Kong stocks by southbound funds, with expectations that the annual net inflow could exceed 1 trillion HKD [3] - The Hang Seng Index has risen by 26.56% this year, leading global major stock indices, driven by ample liquidity and structural industry rotation [3] Group 2 - The proportion of southbound funds in the total trading volume of Hong Kong stocks has increased to approximately 35%, indicating a significant role in market activity [3] - Active public funds have increased their holdings in Hong Kong stocks from 25.8% at the end of last year to 32.5%, with an increase in allocation of 100 to 120 billion HKD this year [3] - The continuous inflow of southbound funds has positively impacted the valuation of Hong Kong stocks, with the AH premium index dropping to 123.4 points, the lowest since June 2020, reflecting a significant liquidity gap between Hong Kong and A-shares [4]

Strategy - The active performance of the Hong Kong stock market in both primary and secondary markets is closely linked to liquidity, which plays a more significant role than in the A-share market [3] - The overall liquidity in the Hong Kong market has been loose this year, driven by macroeconomic weakness and asset scarcity, leading to increased southbound capital inflows and more companies listing in Hong Kong [3] - Looking ahead, the liquidity trend in the Hong Kong market may face tightening pressures in Q3, with a potential demand for funds exceeding 300 billion HKD for IPOs and placements, while the supply of funds will depend on the "profit-making effect" [3] Macroeconomy - The recent rebound of the US dollar index and the weakening of the euro raises questions about whether this is a short-term phenomenon or a structural reversal [6] - The new classical framework suggests that the current account is the main determinant of exchange rates, while the post-Keynesian view emphasizes capital flows as the fundamental force affecting exchange rates [6] - In the short term, the significant increase in net supply of US Treasury bonds may lead to further depreciation of the dollar, while the euro may appreciate [6] Strategy - The current stock-bond relationship differs from historical patterns, with the recent stock market rally driven by bank stocks and small-cap stocks, leading to a "bull market in stocks and stable bonds" [9] - This shift indicates that liquidity, rather than growth expectations, is the primary driver of the stock-bond relationship, suggesting lower risk appetite and limited negative impact on the bond market [9] - It is recommended to maintain a conservative asset allocation until uncertainties regarding tariffs are resolved, while continuing to overweight high-dividend stocks and bonds [9] Strategy - Five significant changes in the funding landscape of the A-share market are identified, including the restructuring of monetary order benefiting RMB assets, an increase in the proportion of individual investors, and improved market attractiveness due to asset scarcity [12] - The funding structure in the A-share market is improving, leading to a positive feedback loop in the funding environment, while many institutional investors are at historically low positions, indicating potential bullish sentiment [12] - While the mid-term market trend is determined by fundamentals, the influence of capital flows may temporarily exceed that of fundamentals, suggesting a relatively positive outlook for the second half of the year [12] Stablecoins and Financial Markets - Stablecoins are seen as a potential new infrastructure, with an analysis of the incentive mechanisms for various participants and their potential impact on financial markets and the international monetary system [15] - Issuing offshore RMB stablecoins is considered a priority for China in participating in the development of stablecoins, although the success of RMB internationalization ultimately depends on its legal and functional anchors [15]

Core Viewpoint - The Hong Kong stock market has remained active since early 2025, driven by new narratives such as DeepSeek, new consumption, and innovative pharmaceuticals, despite external challenges and a weakening domestic growth cycle. The market has experienced a structural rally characterized by high liquidity and asset scarcity [1][15]. Group 1: Market Activity and Liquidity - The average daily trading volume in the Hong Kong stock market reached 240.6 billion HKD, an increase of over 80% compared to 131.8 billion HKD in 2024, marking a historical high [1][2]. - Southbound capital has been consistently active, with an average daily inflow of 6.15 billion HKD, nearly double the 3.47 billion HKD average in 2024, totaling 787.7 billion HKD year-to-date, close to last year's total of 807.9 billion HKD [1][15]. - The IPO market has seen 51 companies listed in 2025, raising over 100 billion HKD, surpassing the total for 2024, with 10 A-share companies converting to H-shares, accounting for 70% of the fundraising [8][9]. Group 2: Structural Market Phenomena - A structurally active market has emerged, with sectors experiencing rotation despite overall macroeconomic weakness, highlighted by the performance of AI, new consumption, and innovative pharmaceuticals [4][15]. - The phenomenon of crowded trades has been observed, where favored stocks and sectors experience short-term expectations and valuation overshooting, as indicated by the analysis of trading volume and market capitalization [6][15]. - The average return on equity (ROE) for the market has stabilized after years of decline, indicating a stabilization in the credit cycle, with outperforming sectors including insurance, brokers, and new consumption [15][16]. Group 3: Future Trends and Market Dynamics - The macroeconomic backdrop of abundant liquidity and limited quality assets is expected to persist, influencing the flow of southbound capital and the number of companies listing in Hong Kong [21][32]. - The liquidity environment is anticipated to tighten in the third quarter due to various factors, including potential liquidity recovery by the Hong Kong Monetary Authority and external pressures from the U.S. dollar environment [39][40]. - The expected inflow of southbound capital for the year is projected to exceed 1 trillion HKD, although the pace may slow down in the second half of the year [40][41]. Group 4: Investment Strategy and Recommendations - The market is advised to focus on structural opportunities, with a "new dumbbell" strategy that balances stable dividend-paying stocks with growth-oriented sectors, particularly in AI applications and innovative pharmaceuticals [54][55]. - The banking sector may face short-term valuation pressures, suggesting a potential shift towards insurance stocks that still offer attractive dividend yields [54][55]. - The overall market sentiment indicates that while the index may oscillate around 24,000 points, a breakthrough will require additional catalysts, particularly in the context of fiscal policy and trade dynamics [51][53].

Group 1 - The China Insurance Asset Management Association reported that 63% of institutions plan to increase their investment in Hong Kong stocks by 2025, focusing on high-dividend sectors such as finance, energy, and telecommunications [1] - The Hong Kong Securities and Futures Commission is actively working to include RMB stock trading counters in the Stock Connect, with implementation details expected to be announced soon [1] - The Hong Kong Stock Exchange reported that the total fundraising amount for Hong Kong stocks reached HKD 280.8 billion in the first half of the year, a year-on-year increase of 322%, indicating a significant rise in market financing activity [1] Group 2 - The Hong Kong Dividend ETF tracks the Hong Kong Stock Connect High Dividend Index, which is compiled by China Securities Index Co., Ltd., selecting stocks with high dividend yields to reflect the overall performance of high-dividend securities in the Hong Kong market [2] - The index components cover traditional high-dividend sectors such as finance and real estate, focusing on companies that can provide stable cash flow and continuous dividends [2]

Group 1: Market Overview - The Hong Kong stock market has shown strong performance, with the Hang Seng Index rising 18% last year and a cumulative increase of 20% in the first half of this year, marking the largest half-year gain in history [1] - The growth in the Hong Kong stock market is primarily driven by increased investment in technology stocks, which has also led to a significant rise in trading of related derivative products [1][2] - The number of Exchange-Traded Products (ETPs) in Hong Kong has exceeded 210, with total assets under management reaching approximately HKD 510 billion, a 30% increase since 2020 [1] Group 2: ETP Market Dynamics - The average daily trading volume of ETPs has increased fivefold, reaching about HKD 40 billion, and the market share of ETP trading has grown from less than 5% five years ago to approximately 17% in the first five months of this year [1] - The continuous innovation in the Hong Kong ETP market has provided liquidity and met evolving investment demands, effectively acting as a buffer during market volatility [1] Group 3: Future Developments - The Hong Kong Stock Exchange is actively promoting the listing of more thematic ETFs, including those focused on innovative technology, climate change, renewable energy, and biotechnology, to better direct funds towards high-quality economic development [2] - The aim is to leverage global market resources through institutional and product innovations, reinforcing Hong Kong's position as a preferred ETP hub in the Asia-Pacific region [2] Group 4: Valuation Insights - According to Tianfeng Securities, the Hang Seng Index and Hang Seng Tech Index exhibit significant valuation advantages, with the Hang Seng Index's TTM P/E ratio at 10.68 and a dividend yield of 3.93% [3] - The Hang Seng Tech Index's TTM P/E ratio stands at 20.10, indicating a historically low valuation level, making the Hong Kong market attractive compared to other major global markets [3]

Core Viewpoint - The article highlights the significant inflow of southbound capital into the Hong Kong stock market, particularly focusing on the banking sector, which has led to improved liquidity and a narrowing of the liquidity gap between Hong Kong and A-shares [1][4][5]. Group 1: Southbound Capital Inflow - Southbound capital has accumulated a net inflow of nearly 730 billion HKD in the first half of the year, marking the highest level for the same period historically [4]. - The continuous inflow of southbound capital has a profound impact on the liquidity and valuation system of the Hong Kong stock market [4]. - The liquidity of the Hong Kong stock market is catching up with that of A-shares, with trading volumes significantly increasing [5]. Group 2: Valuation and Dividend Assets - The AH premium index for Hong Kong and Shanghai stocks fell to 126.91 points on June 12, the lowest since June 2020, indicating a significant decline in the AH premium [6]. - The banking sector has been a major contributor to the decline in AH premium, with banks contributing 6.3 percentage points to the decrease [6]. - The current dividend yield of H-shares is higher than that of A-shares, with 14 H-share banks having valuations lower than their A-share counterparts, presenting a "higher dividend, lower valuation" scenario [8]. Group 3: Investment Trends - The banking sector has become a core allocation direction for southbound capital, with major banks like China Construction Bank and Industrial and Commercial Bank of China seeing significant increases in investment [8]. - Insurance funds have been significant buyers of bank stocks, with 9 out of 19 total stakes taken in banks occurring in the Hong Kong market [9]. - The current yield spread between bank stocks and the 10-year government bond yield remains above 3.5%, indicating that the core logic for the continuation of bank stock performance is still intact [10].

Group 1 - The core viewpoint of the article is that the correlation between Hong Kong stocks and A-shares has significantly increased since 2020, while the correlation with US stocks has weakened [1][2][3] - Historically, Hong Kong stocks were more correlated with US stocks, particularly from 1970 to 2020, but since 2020, this correlation has diminished, especially in 2021 and 2023 [1] - The increase in correlation between Hong Kong and A-shares is attributed to a decrease in foreign capital's share in Hong Kong stocks and an increase in domestic liquidity [1][2] Group 2 - Hong Kong stocks have become less dependent on overseas liquidity since 2020, with valuation contributing more to price movements, aligning with the increased correlation with A-shares [2] - The decline in foreign capital's share is influenced by geopolitical factors, currency arbitrage, and changes in the price-performance ratio of Hong Kong stocks [2] - Domestic capital has accelerated its inflow into Hong Kong stocks due to price advantages and scarcity of investment targets, further linking Hong Kong's liquidity to mainland capital behavior [2] Group 3 - The fundamental performance of Hong Kong stocks is increasingly related to mainland China, with over two-thirds of listed companies being Chinese enterprises, contributing 90% of net profits [3] - The proportion of mainland enterprises listed in Hong Kong has risen since 2020, supported by policies aimed at developing Hong Kong's capital market [3] - The correlation between Hong Kong stocks and overseas markets has weakened, with less impact from changes in overseas demand and economic cycles since 2020 [3]