Market Overview - The Hang Seng Index experienced a decline of 0.87% on June 30, with a cumulative increase of 20% in the first half of the year [2][3] - Southbound capital recorded a net inflow of HKD 52.20 billion on the same day, contributing to a total net inflow of HKD 7449.86 billion in the first half of the year [2][3] Stock Performance - Xiaomi Group-W saw a trading volume exceeding HKD 15 billion, with a stock price increase of 1.70% [4] - Hua Oil Energy surged by 158.46% upon resuming trading, closing at HKD 0.168 per share, despite reporting a revenue decline of 13% year-on-year [6] - Lao Pu Gold's stock price reached a historical high, closing up 14.94% at over HKD 1000 per share, with a market capitalization of HKD 1740.58 billion [10][12] Sector Trends - Financial and real estate sectors showed weakness, while photovoltaic and pharmaceutical stocks were active [3] - Lao Pu Gold's recent store openings in Shanghai and Singapore contributed to its stock performance, with significant sales reported [12] Analyst Insights - UBS analyst Meng Lei indicated that southbound capital may continue to flow into Hong Kong stocks in the second half of the year, driven by structural reforms and favorable policies [12][13] - The analyst highlighted five types of capital crucial for A-share market trends, including long-term institutional investors and southbound funds [13]

Core Viewpoint - The Hong Kong stock market showed a cumulative increase of 20% in the first half of the year, with significant net inflows from southbound funds amounting to 744.99 billion HKD [2][3]. Market Performance - On June 30, the Hang Seng Index fell by 0.87%, the Hang Seng Tech Index decreased by 0.72%, and the Hang Seng China Enterprises Index dropped by 0.96% [2][3]. - The total market turnover for the day was 242.23 billion HKD, reflecting a decrease compared to the previous trading day [2][3]. - Southbound funds recorded a net buying amount of 5.22 billion HKD on the same day [2][3]. Sector Performance - Financial and real estate sectors weakened, while solar energy and pharmaceutical stocks were active [4]. - Notable individual stock performances included: - Lao Pu Gold surged by 14.94%, breaking the 1000 HKD mark, reaching a historical high [4][12][14]. - Xiaomi Group-W saw a trading volume exceeding 15 billion HKD, with a stock price increase of 1.70% [6]. - Hua You Energy experienced a dramatic rise of 158.46% upon resuming trading [8]. Investment Insights - UBS analyst Meng Lei indicated that southbound funds may continue to flow into Hong Kong stocks in the second half of the year, driven by structural reforms and favorable market conditions [15]. - The cumulative net buying of southbound funds exceeded 700 billion HKD from early 2025 to June 30, showing a year-on-year growth of over 100% [15].