Group 1 - The central economic work conference held on December 10-11 outlined the macro policy framework for the upcoming year, focusing on boosting consumption, effective investment, and fostering a positive ecosystem for hard technology innovation [3] - The People's Bank of China has maintained a stable foreign exchange reserve above $3.3 trillion for four consecutive months, while also increasing gold reserves for 13 months [16] - The Hong Kong Mandatory Provident Fund has reached a total asset value of HKD 1.5 trillion, marking a significant milestone in its 25-year history [9] Group 2 - The Federal Reserve lowered the federal funds rate by 25 basis points to a range of 3.50%-3.75%, with indications of potential further rate cuts in the future, although the scope for such cuts may be limited due to high inflation and stable unemployment [4] - The latest report from China Investment Corporation shows an annualized net return of 6.92% on foreign investments over the past decade, exceeding performance targets by 61 basis points [8] - The A-share market has seen private equity maintain high positions, with stock private equity reaching 82.97%, indicating confidence in the market's slow growth potential [18] Group 3 - The Hong Kong stock market has experienced a correction, with the Hang Seng Index down nearly 5% and the Hang Seng Tech Index down close to 15% over the past two months, yet analysts believe the fundamentals remain unchanged [13] - The recent appointment of Liu Xinqun as the new chairman of Bank of China Fund reflects ongoing changes in leadership within the asset management sector [12] - Analysts express concerns over the recent surge in silver prices, which have reached a ten-year high, but suggest that the underlying drivers of this increase differ from past trends [14]

Core Viewpoint - The Hong Kong stock market continues its strong performance, with the Hang Seng Index rising by 2.58%, driven by positive market sentiment and significant inflows into various ETFs managed by GF Fund [1]. Group 1: Market Performance - The Hong Kong stock market's strong performance is reflected in the gains of nine ETFs under GF Fund, with the Hong Kong Innovative Drug ETF (513120) rising over 4.26%, and several other ETFs, including the China Concept Internet ETF (159605) and the Hang Seng Technology ETF Leader (513380), also showing gains exceeding 3% [1]. - The AH premium index has dropped to around 125%, nearing historical lows, which is attributed to continuous inflows from southbound funds and the attractiveness of high-dividend assets in the Hong Kong market [1]. Group 2: Investment Strategies - Huatai Securities' Hong Kong stock strategy team recommends focusing on sectors with improving sentiment and low valuations, particularly emphasizing technology stocks [2]. - The team suggests increasing allocations to internet e-commerce leaders ahead of the mid-August reporting period for overseas Chinese stocks, particularly those with good valuation and improving sentiment [2]. Group 3: ETF Product Overview - GF Fund's range of nine Hong Kong ETFs covers key sectors such as technology, innovative drugs, non-bank financials, and new consumption, catering to investors' needs for capturing market trends [3]. - The Hong Kong Innovative Drug ETF (513120) is the largest in the market, with a scale exceeding 18 billion, and has delivered over 100% returns this year [2]. - The Hong Kong Non-Bank ETF (513750) has also seen significant inflows, with a scale surpassing 13.7 billion, allowing for efficient investment in quality non-bank assets [2].

Core Viewpoint - The Hong Kong stock market showed slight declines, but biotechnology stocks performed strongly, with the Hong Kong Stock Connect Technology ETF (513860) gaining over 28% year-to-date [1] Group 1: Market Performance - As of 13:06, the Hong Kong Stock Connect Technology ETF (513860) rose by 0.10%, with notable individual stock performances including Sunny Optical Technology up over 6%, BYD Electronics up over 5%, and Lion Group Holding up over 4% [1] - The Hong Kong Stock Connect Technology ETF (513860) has seen a net inflow of 270 million yuan over the last five trading days, with a total net inflow of 545 million yuan over the past three months and 686 million yuan year-to-date [1] Group 2: Share Buybacks - On July 9, 37 Hong Kong-listed companies, including Tencent Holdings, conducted share buybacks totaling 49.01 million shares and 1.129 billion HKD [1] - Tencent Holdings repurchased shares worth 500 million HKD on the same day, bringing its total buyback amount for the year to 39.543 billion HKD [1] - WuXi Biologics also repurchased shares worth 298 million HKD, with a year-to-date total of 1.708 billion HKD [1] Group 3: Market Outlook - China Galaxy Securities noted that global macro risks are rising, impacting market risk appetite, but the absolute valuation of Hong Kong stocks remains relatively low, indicating medium to long-term investment value [1] - Guoyuan Hong Kong expects potential policy measures to support Hong Kong stock valuations in the second half of the year amid weakening economic momentum due to tariff impacts [1] Group 4: ETF Composition - The Hong Kong Stock Connect Technology ETF (513860) closely tracks the CSI Hong Kong Stock Connect Technology RMB Index, with the top ten weighted stocks as of July 9, 2025, including Xiaomi Group-W, Tencent Holdings, BYD Company, Alibaba-W, Meituan-W, SMIC, Kuaishou-W, Li Auto-W, Innovent Biologics, and Xpeng Motors-W, collectively accounting for 68.47% of the index [1]