Market Performance Review - The Hong Kong stock market showed strong performance this week, with the Hang Seng Index, Hang Seng Composite Index, and Hang Seng Tech Index increasing by 2.45%, 2.27%, and 2.51% respectively [3][10] - Most primary industry sectors saw gains, with only the telecommunications sector experiencing a slight decline [10][13] - The industrial and materials sectors had the highest weekly gains, both around 8%, while energy, industrial, information technology, and real estate sectors also saw increases exceeding 4% [10][13] Valuation Levels - As of the end of this week, the 5-year PE (TTM) valuation percentile for the Hang Seng Composite Index is at 79%, which is above the 5-year average [3] Buyback Statistics - The total buyback amount this week was 900 million HKD, a decrease from 1.06 billion HKD the previous week [25] - The number of companies engaging in buybacks this week was 34, down from 43 the previous week [25][28] - HSBC Holdings (0005.HK) led the buybacks with an amount of 740 million HKD, followed by China Eastern Airlines (0670.HK) with 30 million HKD [24][25] Southbound Fund Flow - Southbound funds saw a net inflow exceeding 30 billion HKD this week, with total inflows for the year surpassing the total for the previous year [42] - The top net bought companies included China Life (2628.HK) with a net purchase of 4.03 billion HKD and China Construction Bank (0939.HK) with 2.55 billion HKD [32] - Conversely, the top net sold companies included China Mobile (0941.HK) with a net sale of 2.90 billion HKD and the Tracker Fund of Hong Kong (2800.HK) with 2.30 billion HKD [33] Macroeconomic Environment - The overall profitability of the Hong Kong market is highly synchronized with the economic conditions in mainland China, as over 80% of profits come from Chinese companies [37][38] - Recent economic data shows improvements in industrial profits, but sustainability remains in question, particularly when excluding the automotive sector [42] - The market is closely monitoring the impact of U.S. economic data and Federal Reserve interest rate decisions on the funding environment [39][40]