Core Viewpoint - The Hong Kong stock market has seen a significant increase in attractiveness for capital, driven by factors such as the Federal Reserve's interest rate cuts and the catalyzing effect of the artificial intelligence (AI) industry [1] Fundraising and Capital Inflow - The Tianhong Guozheng Hong Kong Stock Connect Technology Index fund raised over 2.5 billion yuan, setting a record for new Hong Kong-themed fund launches this year [2] - Hong Kong-themed ETFs have experienced substantial capital inflows, with net inflows exceeding 10 billion yuan since September, particularly in ETFs tracking the Hong Kong Stock Connect Internet Index [3] Performance of Southbound Capital - Southbound capital has accelerated its allocation to Hong Kong stocks, with net purchases exceeding 60 billion HKD in the week of September 8-12, marking a five-month high [4] - The E Fund Hong Kong Stock Connect Growth Mixed Fund has implemented purchase limits due to its strong performance, achieving a return rate of 56.21% year-to-date as of September 16 [4] Market Valuation and AH Premium - The AH premium has reached a low point, leading to differing opinions on whether Hong Kong stocks are overvalued; some analysts believe the current premium is reasonable given the market environment [1][5] - The market is expected to benefit from global liquidity and foreign capital inflows, with potential for further narrowing of the AH premium as the Chinese yuan appreciates and the US dollar weakens [5][6] Future Outlook - Analysts suggest that the AI technology and new consumption sectors have significant growth potential, which could drive the Hong Kong stock market upward [6] - Continuous inflow of southbound capital and a low domestic interest rate environment may lead to increased capital allocation to the Hong Kong market [6]