Core Views - The report highlights that the Hong Kong stock market remains attractive due to low valuations and increasing trading activity driven by the "profit-making effect" [4] - The report suggests a medium to long-term optimistic outlook for the market, with significant inflows of capital from mainland China [4] Market Review - The Hang Seng Index closed at 23,831 points, down 145 points or 0.61%, while the Hang Seng China Enterprises Index closed at 9,656 points, down 47 points or 0.49% [2] - The market turnover decreased to 82.799 billion HKD, with net inflows of 484 million HKD recorded in the Hong Kong Stock Connect [2] - The report notes that local real estate, software, and 5G sectors experienced the largest declines, while gold stocks performed well [2] Economic Data - China's July services PMI rose to 52.6, marking a 14-month high, which contributed to a brief recovery in the Hang Seng Index [2] - The report indicates that the A-share and Hong Kong stock indices recorded gains of 2% to 5% in July, with the healthcare sector performing the best, as evidenced by a 23% increase in the Wind Hang Seng Medical Health Index [4] Investment Recommendations - The report recommends focusing on sectors such as artificial intelligence, robotics, semiconductors, and industrial software, which are seen as new productivity drivers [4] - It also suggests monitoring new consumption sectors supported by policy, including infant consumption, sports apparel, and IP film and animation [4] - The report highlights the value of investing in state-owned enterprises with low valuations and high dividends, as well as technology companies benefiting from AI integration [4] Company Spotlight - ZTE Corporation (0763HK) is highlighted as a leading global communication manufacturing company, with a projected revenue of 121.299 billion RMB for 2024, a slight decrease of 2.38% year-on-year [9] - Despite a small decline in revenue and net profit, ZTE maintains a high gross margin of 37.91% and has shown significant growth in its enterprise and consumer business segments [9] - The report emphasizes ZTE's competitive advantage in computing power, particularly with its newly launched intelligent computing server capable of supporting 64 GPUs [9]

Market Overview - The Hong Kong stock market experienced a decline, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61% [1] - The market turnover decreased to 82.799 billion, with net inflows of 484 million from the Stock Connect [1] - The US stock market saw mixed performance, with the Dow Jones down 0.74% and the S&P 500 down 0.37%, while the Nasdaq fell slightly by 0.03% [2] Sector Performance - In Hong Kong, local real estate, software, and 5G sectors faced significant declines, while gold stocks performed well [1] - The technology sector in the US was led by strong performances from major companies like Meta, which rose over 11%, and Microsoft, which increased nearly 4% [2] - The healthcare sector in Hong Kong showed the best performance in July, with the Hang Seng Medical Health Index rising 23% [3] Investment Opportunities - The report suggests continued focus on sectors such as artificial intelligence, robotics, semiconductors, and industrial software, which are seen as new productivity drivers [3] - The innovative pharmaceutical sector, supported by policy, and consumer-oriented traditional Chinese medicine and healthcare sectors are also highlighted as areas of interest [3] - Companies in the low-carbon power operation sector, such as Longyuan Power (0916HK) and CGN New Energy (1811HK), are recommended due to their relatively low valuation [9] Company Highlights - ZTE Corporation (0763HK) is noted for its comprehensive product line and solutions in the telecommunications sector, with a projected revenue of 121.299 billion for 2024, despite a slight decline [10] - The company has maintained a high gross margin of 37.91% and is expected to see significant growth in its government and enterprise business segments [10] - The report anticipates ZTE's net profits for 2025 and 2026 to be 9.17 billion and 9.96 billion RMB, respectively, indicating a low valuation compared to its current market cap [10]

Market Overview - The Hong Kong stock market experienced a decline, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61% [1] - The market turnover decreased to 82.799 billion HKD, with net inflows from the Stock Connect totaling 484 million HKD [1][5] - The US stock market showed mixed results, with the S&P 500 index closing at 6,362 points, down 7 points or 0.1% [2] Industry Insights - The report highlights the current advantages of the Hong Kong stock market, including low valuations and increasing trading activity under the "profit-making effect," suggesting a positive medium to long-term outlook [3] - The report emphasizes the continued investment value in Hong Kong stocks, particularly in sectors such as artificial intelligence, robotics, semiconductors, and industrial software [3] - The healthcare sector, particularly innovative pharmaceuticals and traditional Chinese medicine, is also recommended for attention due to policy support [3] Company Performance - Notable declines were observed in the electric vehicle sector, with Li Auto dropping nearly 13% and BYD falling close to 6% [1] - In the healthcare sector, companies like 3SBio and Hengrui Medicine saw declines of nearly 5% and over 3%, respectively [1] - The report suggests focusing on companies like Giant Legend and DMG Entertainment, which are positioned well within the cultural industry, as they reported significant revenue growth [9]

Market Overview - The Hong Kong stock market experienced fluctuations, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61% [1] - The market saw a net inflow of funds through the Stock Connect, amounting to 484 million, with the Shanghai and Shenzhen Stock Connects contributing 283 million and 201 million respectively [1] - The market's trading volume decreased to 82.799 billion [1] US Market Insights - Investors are digesting trade agreements between the US and EU while awaiting the Federal Reserve meeting and economic data [2] - The S&P 500 index closed slightly higher by 1 point, while the Nasdaq rose by 0.3% and the Dow Jones fell by 0.1% [2] - Tesla confirmed a $16.5 billion chip contract with Samsung, leading to a 3% increase in its stock price [2] Market Outlook - The report emphasizes a positive outlook for the Hong Kong stock market, citing low valuations and increasing trading activity under the "profit-making effect" [3] - The report suggests that the recent strong performance of A-shares and Hong Kong stocks will boost global and domestic capital confidence in Chinese equity assets [3] - Key sectors to watch include technology (AI, robotics, semiconductors), innovative pharmaceuticals, and consumer-related sectors benefiting from low-risk interest rates [3] Company Highlights - Hengrui Medicine (1276HK) saw a significant increase of 24% following an announcement of a project worth up to $12.5 billion [1] - Major financial stocks performed well, with Guotai Junan International (1788HK) rising over 9% [1] - The report highlights the performance of various companies, including ZTE Corporation (0763HK), which is focusing on AI and cloud computing solutions [10] Economic Policies - The Chinese government announced a child-rearing subsidy of 3,600 yuan per child per year for families with children under three years old, effective from January 1, 2025 [9] - This policy is expected to stimulate the maternal and infant consumption market and indirectly benefit the assisted reproductive industry [9]