Market Overview - The Hong Kong stock market continues to show low valuations and increased trading activity under the "profit-making effect," maintaining a relatively optimistic outlook for the medium to long term [3] - In July, major stock indices in both A-shares and Hong Kong recorded increases between 2% to 5%, with the healthcare sector performing the best, as evidenced by the 23% rise in the Wind Hang Seng Medical Health Index [3] - Southbound capital inflows reached a new high of 135.6 billion HKD in July, indicating strong interest in Hong Kong stocks [3] Sector Focus - The report suggests continued attention on sectors such as artificial intelligence, robotics, semiconductors, and industrial software, which are seen as new productivity drivers [3] - New consumption sectors supported by policy, including infant consumption, sports apparel, and IP film and animation, are also highlighted as areas of interest [3] - The report emphasizes the value of investing in state-owned enterprises with low valuations and high dividends across various sub-sectors [3] - Companies benefiting from "AI+" empowerment in the tech sector and industry leaders are recommended for further observation [3] Company Highlights - In the software industry, China's software business revenue reached 70,585 billion CNY in the first half of the year, marking an 11.9% year-on-year growth, with total profits increasing by 12.0% to 8,581 billion CNY [9] - The report recommends focusing on leading companies in the software and information technology services sector, such as China Software International (0354HK) and Kingdee International (0268HK) [9] - In the gold mining sector, the report notes that global central banks purchased 166.5 tons of gold in the last quarter, with expectations for total demand to reach approximately 815 tons this year [9] - Companies like China Gold International (2099HK) and Zijin Mining (2899HK) are suggested for investment consideration due to their strategic asset positioning in gold [9]