A-Share Market - The overall market showed an increase last week, with small-cap stocks performing significantly better than mid and large-cap stocks. The CSI 2000 index rose by 3.54%, and the CSI 1000 index increased by 2.51%, while the ChiNext index saw a modest rise of less than 0.5% [5] - The average daily trading volume reached 1.70 trillion, reflecting a week-on-week decline of 6.26% [5] - The recent market recovery has favored small-cap stocks, with sectors such as non-ferrous metals, machinery, and national defense performing well, while the computer and pharmaceutical sectors lagged [5] - The Shanghai government released the "Implementation Plan for the Development of Embodied Intelligence Industry," aiming for a core industry scale to exceed 50 billion by 2027, which, along with the World Robot Conference, has attracted investment in the machinery sector [5] - Following the recent Politburo meeting, which aligned with expectations, the overall monetary policy remains stable, and the "anti-involution" narrative is moderate. The A-share market is expected to continue a structural upward trend driven by valuation recovery under a dual easing fiscal and monetary environment [5] Hong Kong Market - The Hong Kong market experienced a rebound last week, with the Hang Seng Index rising by 1.43% and the Hang Seng Tech Index increasing by 1.17%. The materials sector, particularly metals, saw significant gains, with weekly increases exceeding 10%, while healthcare and consumer discretionary sectors faced pressure [6] - The rebound in the Hong Kong market was primarily driven by the materials sector, especially metals. The fifth round of price increases for coking coal was fully implemented, and the ongoing "anti-involution" trend boosted the coal sector. Additionally, rising gold prices contributed to substantial gains in gold stocks [6] - Companies in the metals sector, such as China Hongqiao, reported better-than-expected interim results, further supporting the rise in the metals sector [6] - Market sentiment has improved, with the Hang Seng Index showing relative strength, mainly driven by cyclical sectors. The ongoing "anti-involution" trend is expected to sustain the recovery of cyclical sectors. Furthermore, the current low valuation of the internet social services sector in Hong Kong presents potential upside, and with rising AI capital expenditures and increased support for technological innovation policies, leading companies in the Hang Seng Tech sector have medium to long-term growth potential [6]

Group 1 - The overall valuation of the Hong Kong internet social services sector is currently low, indicating potential upward space [1] - With the rise in AI capital expenditure and increased support for technological innovation policies, leading companies in the technology sector have medium to long-term growth potential [1] - Recent market sentiment has declined significantly, but positive signals from the Political Bureau meeting and policy outlook for the second half of the year suggest that overall policies will remain stable, leading to a continuation of valuation recovery under structural policy guidance [1] Group 2 - The Hong Kong Technology ETF (513020) tracks the Hong Kong Stock Connect Technology Index (931573), which primarily includes listed technology-related companies across nine Hang Seng secondary industries, reflecting the investment characteristics of the integration of technology and consumption [1] - Investors without stock accounts can consider the Cathay CSI Hong Kong Stock Connect Technology ETF Initiated Link A (015739) and Link C (015740) [1]

A-Share Market Overview - The A-share market experienced an overall decline in the first week of August, with small-cap growth sectors showing smaller declines compared to large-cap growth sectors. The CSI 2000 index fell by 0.01%, while the ChiNext index decreased by 0.74%. In contrast, the Northbound 50 index dropped by 2.70% [5] - The decline in the market was largely driven by significant drops in upstream resource products, with non-ferrous metals down by 4.69%, coal down by 4.56%, and building materials down by 3.32%. The political bureau meeting at the end of July adjusted its stance on "anti-involution," leading to a relative cooling of the policy's intensity, which contributed to the pullback in the upstream resource sector [5] - Looking ahead, the political bureau meeting's outcomes were in line with expectations, maintaining a steady overall policy stance. The report anticipates that the A-share market will continue to experience structural upward fluctuations driven by valuation recovery under a dual easing environment of fiscal and monetary policy [5] Hong Kong Market Overview - The Hong Kong market also saw a significant pullback in the first week of August, with the Hang Seng Index declining by 3.47% and the Hang Seng Tech Index falling by 4.94%. The materials and information technology sectors experienced the largest declines, while healthcare and telecommunications sectors rose against the trend [6] - The pullback in the Hong Kong market was influenced by the fading sentiment around "anti-involution," which affected previously high-performing upstream resource stocks. Additionally, weakened sales expectations in the home appliance sector led to significant declines in consumer discretionary stocks like Midea. The internet and social services sector in Hong Kong also faced declines due to weakened consumption expectations [6] - The report suggests that while market sentiment has cooled, the internet and social services sector in Hong Kong is currently at a low valuation, indicating potential for upward movement. Furthermore, with rising AI capital expenditures and increased support for technological innovation policies, leading companies in the Hang Seng Tech sector are expected to have medium to long-term growth potential [6]