Group 1 - The Hang Seng Index slightly declined by 0.18% while the Hang Seng Tech Index rose by 1.04% on September 18, with a half-day trading volume of HKD 204.71 billion [1] - The Hong Kong Stock Connect Tech ETF (159101) increased by 0.81%, with significant gains in constituent stocks such as ASMPT and Hua Hong Semiconductor, which surged by 10%, and Horizon Robotics-W and SMIC, which rose by 6.79% and 6.65% respectively [1] - The Federal Reserve's interest rate cut is expected to benefit the Hong Kong stock market significantly, as it alleviates global dollar liquidity pressure and lowers discount rates, thereby promoting valuation recovery in the tech sector [1] Group 2 - The trend of foreign capital returning to emerging markets is strengthening, with Hong Kong tech stocks being attractive as high-growth assets due to their low valuations and high elasticity [1] - The active participation of southbound funds creates a resonance effect between domestic and foreign capital [1] - The Hong Kong Stock Connect Tech ETF (159101) covers the entire technology industry chain, while the Hang Seng Internet ETF (513330) focuses on leading internet companies [2]

Group 1 - The report highlights the recovery of valuations in the Hong Kong stock market, driven by increased liquidity and growth potential, breaking the previous undervaluation trend. The average daily trading volume has reached HKD 124.1 billion, with significant net inflows from southbound funds [1][10][12] - The report indicates that the top ten Chinese tech giants listed in Hong Kong account for approximately 34% of the market capitalization, contributing to the growth potential of the Hong Kong market [1][14] - The report identifies key sectors of interest for investment in Hong Kong, including technology, pharmaceuticals, consumer goods, and banking, with a focus on new economy companies [1][15] Group 2 - The report analyzes the performance of the Changcheng Hong Kong Stock Connect Value Select Multi-Strategy Fund (007132), which has outperformed the Hang Seng Index with an annualized excess return of 5.54% since June 2019 [2][20] - The fund's investment strategy is concentrated in high-growth sectors such as TMT (Technology, Media, and Telecommunications), pharmaceuticals, and advanced manufacturing, with the top five sectors accounting for about 90% of the fund's holdings [2][27] - The fund manager, Qu Shaojie, has extensive experience in managing Hong Kong investments, focusing on long-term holdings of fundamentally strong companies and emphasizing the alignment of valuation with profit growth [3][42] Group 3 - The report emphasizes the fund's buy-and-hold strategy, with a low turnover rate of approximately 180% over the past three years, indicating a stable investment style [2][38] - The fund's top holdings include companies with strong performance and growth potential, such as Pop Mart, which has shown significant returns due to its unique business model and consumer demand [2][30] - The report notes that the fund's holdings are currently valued below the overall market level, suggesting potential for significant appreciation as market valuations improve [2][34][36]