Group 1 - Recent capital rotation into A-shares and significant rise in Hong Kong interbank rates have impacted investor sentiment, but the fundamentals of the Hong Kong stock market remain strong [1] - The target for the Hong Kong stock index is maintained at 28,000 points by mid-next year, with a positive outlook on gaming and video stocks [1] - Anticipated volatility in the market due to the upcoming expiration of the US-China tariff grace period, but the impact on Hong Kong stocks is expected to be limited unless there is a significant drop in US or global markets [1] Group 2 - The inflow of capital from the north has exceeded 1 trillion yuan, but the pace of southbound capital inflow is expected to slow down, while foreign capital continues to increase holdings in Chinese stocks [1] - Investment recommendations include allocating to high-dividend stocks for better resilience and income buffer, alongside growth stocks [1] - Criteria for growth stocks include low correlation with economic cycles, stable competitive landscape, and overseas growth potential, with a cautious stance on e-commerce due to its sensitivity to economic cycles and intense competition [1] Group 3 - Regarding the anti-involution concept stocks, any positive news may lead to short-term rebounds, but the upward potential is limited due to challenges in controlling production capacity and prices, as well as weak demand recovery [2]

Group 1 - The core viewpoint is that international investors are increasingly focusing on Chinese assets, particularly in the context of uncertainty surrounding US dollar policies and the search for investment opportunities outside the US [1][2] - HSBC has observed a flow of foreign capital into the Hong Kong stock market, although the overall scale is still below historical highs, indicating room for further foreign investment in Hong Kong stocks [1] - Investment from foreign capital is primarily concentrated in the artificial intelligence sector and high-dividend stocks [1] Group 2 - In the field of artificial intelligence, China has surpassed the US and Europe in research output, and while Chinese AI-related stocks have been revalued, their valuations still lag behind their US counterparts [1] - The pace of share buybacks in Asia (excluding Japan) is breaking records, with expected equity returns rising from approximately 11% last year to 12.5% by 2026 [1] - The People's Bank of China will provide refinancing tools for commercial banks in 2024 to support share buybacks by listed companies and major shareholders, leading to a positive outlook for high-dividend quality state-owned enterprises, Hong Kong insurance companies, telecom stocks, and real estate stocks [1] Group 3 - The impact of the US tariff war on China's capital markets has weakened, with Chinese goods accounting for only about 13% of total US imports, compared to 2018 [2] - Despite initial expectations that Asian stock markets would be most affected by the tariff war, the mainland and Hong Kong stock markets have remained relatively stable [2] - HSBC Private Banking maintains a high allocation to gold over the next six months, anticipating strong demand from global investors for risk diversification and hedging [2] Group 4 - HSBC forecasts a target price of 25,830 points for the Hang Seng Index this year, indicating potential for upward movement [4] - As the focus of US tariff policies shifts, risk sentiment in Asian markets is gradually stabilizing [4] - HSBC plans to increase holdings in Asian stock markets driven by domestic demand and supportive stimulus policies, including those in China, India, and Singapore [4]

Core Viewpoint - HSBC Private Banking predicts that foreign capital is flowing into the Hong Kong stock market, primarily focusing on AI and high-yield sectors [1] Group 1: Market Outlook - HSBC forecasts a target price of 25,830 points for the Hang Seng Index this year, indicating potential for further upside [1] - As the focus of U.S. tariff policies shifts, risk sentiment in Asian markets is gradually stabilizing [1] Group 2: Investment Strategy - HSBC plans to increase holdings in Asian stock markets driven by domestic demand and supportive stimulus policies, including China, India, and Singapore [1] - Currently, foreign capital inflow into the Hong Kong stock market is observed, but the overall scale is still below historical highs, suggesting room for further foreign investment [1] Group 3: Sector Focus - Foreign investment in Chinese assets is primarily concentrated in the artificial intelligence sector and high-yield stocks [1]