Group 1: Market Trends - The market anticipates the U.S. to initiate a rate cut cycle this month, with expectations of a 25 to 50 basis point reduction to stimulate economic growth[1] - The U.S. labor market shows signs of weakness, with non-farm employment data revised down by 911,000 for the period from April 2024 to March 2025, indicating a trend towards a more accommodative monetary policy[1] - The Hong Kong stock market has recently performed well, with the Hang Seng Index surpassing 26,000 points, reaching a nearly four-year high, and net inflows from northbound capital amounting to at least 10 billion HKD[2] Group 2: Investment Opportunities - H-shares are expected to benefit more from U.S. rate cuts compared to A-shares, as they are more sensitive to monetary easing, which could enhance valuation and profit growth potential[3] - The Dachen China Flexible Allocation Fund focuses on industry leaders' fundamentals and future growth potential, holding approximately 70.7% in stocks and 25.7% in bonds as of July 2025[3] - Analysts are raising target prices for Hong Kong stocks, indicating significant upside potential in the market[2]