Core Viewpoint - The Hong Kong stock market continues its strong performance, with the Hang Seng Index rising by 2.58%, driven by positive market sentiment and significant inflows into various ETFs managed by GF Fund [1]. Group 1: Market Performance - The Hong Kong stock market's strong performance is reflected in the gains of nine ETFs under GF Fund, with the Hong Kong Innovative Drug ETF (513120) rising over 4.26%, and several other ETFs, including the China Concept Internet ETF (159605) and the Hang Seng Technology ETF Leader (513380), also showing gains exceeding 3% [1]. - The AH premium index has dropped to around 125%, nearing historical lows, which is attributed to continuous inflows from southbound funds and the attractiveness of high-dividend assets in the Hong Kong market [1]. Group 2: Investment Strategies - Huatai Securities' Hong Kong stock strategy team recommends focusing on sectors with improving sentiment and low valuations, particularly emphasizing technology stocks [2]. - The team suggests increasing allocations to internet e-commerce leaders ahead of the mid-August reporting period for overseas Chinese stocks, particularly those with good valuation and improving sentiment [2]. Group 3: ETF Product Overview - GF Fund's range of nine Hong Kong ETFs covers key sectors such as technology, innovative drugs, non-bank financials, and new consumption, catering to investors' needs for capturing market trends [3]. - The Hong Kong Innovative Drug ETF (513120) is the largest in the market, with a scale exceeding 18 billion, and has delivered over 100% returns this year [2]. - The Hong Kong Non-Bank ETF (513750) has also seen significant inflows, with a scale surpassing 13.7 billion, allowing for efficient investment in quality non-bank assets [2].

Group 1 - The logistics ETF (516910) leads the market with a gain of 3.56% [1] - The CSI 2000 ETF (563200) increased by 1.94% [1] - The Hang Seng ETF (159312) rose by 1.27% [1] Group 2 - The innovative drug ETF (159748) experienced the largest decline, falling by 2.78% [1] - The aerospace ETF (159208) decreased by 1.21% [1] - The Hong Kong Stock Connect innovative drug ETF (159570) dropped by 1.19% [1]

Core Insights - During the Hong Kong stock market closure from April 18 to April 21, related ETFs experienced significant price increases, with some premium rates exceeding 20% [1][2] - The surge in ETF prices is attributed to speculative trading by capital during the market closure, leading to a disconnection between prices and actual values [1][6] ETF Performance - On April 21, the Hong Kong Stock Connect 100 ETF reached a trading volume of 201 million yuan, closing with a premium rate of 20.14% after hitting the daily limit [3] - The Hong Kong Stock Connect 50 ETF and Hang Seng ETF also saw premium rates above 10%, while the Hong Kong National Enterprises ETF exceeded 8% [5] Market Dynamics - The trading of ETFs during the market closure was influenced by the inability to update net asset values (NAV) due to the suspension of subscription and redemption channels [6] - The small scale of many ETFs contributed to their susceptibility to speculative trading, as they could not adjust supply in real-time [6][7] Investor Considerations - The phenomenon of premium and discount in ETFs is linked to their unique trading mechanisms, allowing for price discrepancies between primary and secondary markets [7] - Recent announcements from several ETFs have warned investors about the risks associated with high premiums, emphasizing the potential for significant losses if purchased at inflated prices [8][9]