Group 1 - The core viewpoint is that the Hong Kong stock market is expected to have a strong start in the first half of 2025, driven by AI technology revaluation and supported by sectors such as new consumption, innovative pharmaceuticals, and non-bank financials [1] - Financial and technology sectors are the most favored by the market, with southbound funds focusing on financials, particularly banks, and diversifying into information technology and communication services [1] - Foreign investment preferences lean towards financials, discretionary consumption, and information technology, indicating a structural bull market resilience in the second half of the year [1] Group 2 - The appreciation of the RMB and continuous inflow of southbound funds are crucial supports for the market, with the financial sector being attractive to insurance capital due to its low volatility and high dividend characteristics [1] - The technology growth sector benefits from reduced financing costs, suggesting a favorable environment for growth [1] - Long-term, Hong Kong stocks are seen as core assets in RMB, with significant potential for narrowing the "country risk premium" and increasing domestic pricing power, which will amplify revaluation heights [1] Group 3 - The Hong Kong Stock Connect 50 ETF (159712) tracks the Hong Kong Stock Connect 50 Index (930931), which consists of 50 large companies listed in Hong Kong that meet Stock Connect eligibility, reflecting the performance of quality Hong Kong stocks available for investment through the Stock Connect mechanism [1] - The index covers multiple industries, focusing on key areas such as finance, information technology, and consumption, demonstrating strong market representation and liquidity [1] - Investors without stock accounts can consider the Cathay CSI Hong Kong Stock Connect 50 ETF Initiated Link A (014689) and Link C (014690) [1]

Core Viewpoint - The recent strong performance of Hong Kong stocks is driven by a rebound in the internet sector and structural factors leading to a bull market in the region [3][5]. Group 1: Market Performance - On July 23, the Hong Kong Technology ETF (513020) rose by 2.02% in a single day, with a 20-day increase of 7.73, outperforming major A-share indices [1]. - The Hong Kong Stock Connect 50 ETF (159712) saw a daily increase of 1.45% and a 20-day rise of 3.37% [1]. Group 2: Factors Influencing the Market - The rebound in the internet sector has significantly contributed to the stronger performance of Hong Kong technology indices compared to broader indices [3]. - The "anti-involution" and water-electricity market trends have catalyzed growth in construction and building materials sectors in both A-shares and H-shares [3]. Group 3: Liquidity and Investment Trends - The strong performance of Hong Kong stocks is closely linked to the current liquidity conditions, characterized by a low domestic interest rate environment and a scarcity of high-return assets [5]. - As of June, China's M2 reached 330 trillion yuan, which is 2.4 times the GDP, indicating a significant demand for asset allocation [5]. - The ongoing liquidity easing is expected to continue, providing certain allocation value in Hong Kong stocks [7]. Group 4: Future Outlook - Despite potential short-term disturbances, the long-term outlook remains positive due to the resonance between fundamentals and liquidity [7]. - Investors are advised to focus on Hong Kong Technology ETF (513020) and Hong Kong Stock Connect 50 ETF (159712) for low-position layouts [7].

Market Overview - A-shares experienced a slight increase with the Shanghai Composite Index rising by 0.01% to 3582.30 points, while the Shenzhen Component Index fell by 0.37% and the ChiNext Index remained flat [1] - The total trading volume in the Shanghai and Shenzhen markets was 1.86 trillion yuan, a decrease of 28.4 billion yuan compared to the previous trading day [1] - Semiconductor equipment, chips, finance, and healthcare sectors led the gains, while sectors related to anti-involution and the Yarlung Tsangpo River project, such as building materials, infrastructure, photovoltaic, and coal, saw declines [1] Hong Kong Market Performance - The Hong Kong stock market showed strong performance, with the Hong Kong Technology ETF (513020) rising by 2.02% in a single day and a 20-day increase of 7.73%, closely mirroring the A-share indices but with greater magnitude [1] - The Hong Kong Stock Connect 50 ETF (159712) also saw a daily increase of 1.45% and a 20-day increase of 3.37% [1] Liquidity and Investment Trends - The strong performance of the Hong Kong stock market is closely linked to the current liquidity situation, characterized by a low domestic interest rate environment and a scarcity of high-return assets, leading to significant inflows of domestic capital into undervalued Hong Kong stocks [3] - The People's Bank of China continues to maintain a loose liquidity stance, with M2 reaching 330 trillion yuan, 2.4 times the GDP, indicating a strong demand for asset allocation [3] Sector Analysis - The recent rally in the Hong Kong market is driven by two main factors: a strong rebound in the internet sector and the simultaneous catalysis of anti-involution and water-electricity trends affecting both A and H shares, benefiting sectors like building materials and construction [4] - The semiconductor sector showed strong performance, with the Semiconductor Equipment ETF (159516) rising by 2.46% and the Chip ETF (512760) increasing by 0.78% [7] Semiconductor Industry Insights - Global and domestic semiconductor sales have shown significant increases, with domestic sales in May rising by 20.5% year-on-year, driven by strong demand for AI chips [9] - Taiwan Semiconductor Manufacturing Company (TSMC) reported record high revenue and net profit in Q2, with net profit increasing by 61%, exceeding analyst expectations [9][11] - The long-term trend towards domestic chip production remains a key focus, despite potential risks associated with reliance on foreign technology [12]

Group 1 - The Hong Kong stock market is experiencing positive developments, including the implementation of the "Stablecoin Ordinance" to enhance the digital asset regulatory framework [1] - There has been an increase in A-share companies listing in Hong Kong, with 5 companies listed this year and around 40 more in the pipeline, covering sectors such as technology, consumer goods, new energy, and pharmaceuticals [1] - The Hong Kong Stock Exchange (HKEX) is reforming its listing system to facilitate these listings, which is expected to improve market liquidity and trading demand [1] Group 2 - CITIC Securities indicates that the HKEX's core business will benefit from improved market liquidity and the expansion of the derivatives market, which opens up revenue growth opportunities [1] - The People's Bank of China’s recent interest rate cuts are expected to enhance market liquidity, while cross-border wealth management initiatives are bringing in more funds [1] - The valuation of HKEX remains attractive, with expectations that the second-quarter performance will drive valuations back to reasonable levels [1] Group 3 - The Hong Kong Stock Connect 50 ETF (code: 159712) tracks the Hong Kong Stock Connect 50 Index (code: 930931), which includes 50 highly liquid stocks listed in Hong Kong, primarily focusing on large-cap blue-chip companies [1]

Group 1 - Multiple Hong Kong-based broad-based ETFs continue to show strong performance, with the Hong Kong Stock Connect 100 ETF (159788) achieving two consecutive trading gains [1] - The Hong Kong National Enterprises ETF (513810), Hong Kong Stock Connect 50 ETF (159712), Hang Seng ETF Hong Kong Stock Connect (159312), and Hang Seng Hong Kong Stock Connect ETF (159318) all recorded increases of over 5% [1]