Group 1 - The Hong Kong stock market has shown strong performance, with the Hang Seng Index up over 27% year-to-date, significantly outperforming major global indices and reaching a three-and-a-half-year high [1] - The average daily trading volume of Hong Kong stocks in the first half of the year was HKD 240.6 billion, an increase of over 80% compared to HKD 131.8 billion in 2024 [1] Group 2 - Many small and medium-sized banks listed in Hong Kong are experiencing low trading volumes, with some banks recording zero transactions. On July 23, two banks had zero trading volume, two had less than HKD 10,000, and four had less than HKD 100,000 [2] - Guizhou Bank, which had a trading volume of HKD 9.6 million on July 23, has seen a significant decline in its stock price since its listing, reaching a historical low of HKD 0.98 per share in February this year [2] - The market capitalization of Guizhou Bank is HKD 18.235 billion, with a price-to-book ratio of only 0.345 [2] Group 3 - In contrast, large Chinese banks listed in Hong Kong are very active, with major banks like China Construction Bank and Industrial and Commercial Bank of China each recording trading volumes exceeding HKD 1 billion on July 23 [3] - China Construction Bank's H-shares had a trading volume of HKD 32.41 billion, ranking 18th in the overall trading volume for the day [3] Group 4 - Due to a lack of sustained capital inflow, some small and medium-sized banks are considering privatization. For instance, Jiu Tai Rural Commercial Bank announced a voluntary conditional cash offer for all its issued H-shares and domestic shares, intending to delist from the Hong Kong Stock Exchange [4] - The bank cited insufficient liquidity as a major reason for its decision to delist, stating that its ability to raise capital from the equity market is extremely limited [4] - The trend of small banks considering delisting has been observed, with Jinzhou Bank having already delisted in April last year and the overall number of successful IPOs for small banks in Hong Kong significantly decreasing in recent years [4]