Market Overview - The market experienced fluctuations with all three major indices closing lower, with the Shanghai Composite Index down 0.03%, Shenzhen Component Index down 0.22%, and ChiNext Index down 0.22 [1] - Sectors such as chemical pharmaceuticals, automotive parts, and oil showed gains, while insurance, steel, and energy metals sectors faced declines [1] Pharmaceutical Industry Insights - The National Healthcare Security Administration announced the initiation of the 11th batch of centralized drug procurement, including 55 products, with results expected to be published between October and November 2025 [1] - Institutions are optimistic about the overall recovery opportunities in the innovative drug sector, particularly following the adjustment of the national medical insurance and commercial health insurance drug directories [2] Automotive Industry Developments - As of July 11, 2025, the proportion of new energy vehicles (NEVs) in China's automotive market reached 10%, with an expected total NEV sales of 16 million units this year, and NEV sales are projected to exceed 50% of total new car sales [2] - Continuous release of new models and sustained consumer demand are expected to keep the automotive market performance strong, with a focus on low-valuation leading companies in the electric and intelligent vehicle sectors [3] Hong Kong Market Outlook - The Hong Kong stock market is anticipated to experience a structural upward trend, with overall valuations remaining relatively low and long-term investment value being high [3] - The ongoing reform of the listing system in Hong Kong is expected to enhance asset quality and liquidity, potentially attracting more southbound capital [3]

Group 1 - The core viewpoint of the articles highlights the recent adjustments in the Hong Kong technology sector, with market funds taking the opportunity to invest in the Hang Seng Technology ETF (513130), which saw a net inflow of 404 million yuan on July 3 [1] - The Hang Seng Technology ETF (513130) has shown positive growth in both shares and scale, reaching 37.726 billion shares and 26.201 billion yuan as of July 3, with a year-to-date increase of 31% compared to the beginning of the year [1] - The Hang Seng Technology Index, which the ETF closely tracks, includes 30 Hong Kong-listed companies related to technology, with major constituents being Xiaomi Group-W, NetEase-S, Tencent Holdings, Alibaba-W, and BYD Company, all of which are leaders in the internet and technology manufacturing sectors [1] Group 2 - The current price-to-earnings (P/E) ratio of the Hang Seng Technology Index is 19.86 times, which is significantly lower compared to the Nasdaq 100's 35.48 times, indicating potential for valuation uplift [1] - According to Huatai Securities, foreign capital is no longer flowing out of the Hong Kong market, with an increase in foreign investment in AI technology and new consumption sectors since early this year [2] - The anticipated return of foreign capital and increased southbound trading is expected to provide additional funding for the Hong Kong technology sector, with a focus on core assets such as the Hang Seng Technology ETF (513130) [2]