Investment Rating - The report maintains an "Outperform" rating for the Hong Kong stock market [4] Core Viewpoints - The Hong Kong stock market has shown a rebound, with most industries performing well, particularly in the upstream and midstream sectors [1] - The Hang Seng Index increased by 1.4% and the Hang Seng Composite Index rose by 2.0% during the week, with small-cap stocks outperforming mid and large-cap stocks [1] - Among the concept indices, the Hang Seng Automotive and Hang Seng Consumer indices performed strongly, while the Hang Seng Biotechnology and Hang Seng Technology indices lagged [1] Summary by Sections Market Performance - The Hang Seng Index's valuation increased by 1.9% to 11.4x, while the Hang Seng Composite Index's valuation rose by 2.3% to 11.6x [2] - The Hang Seng Consumer index saw a significant valuation increase of 3.4% to 15.7x, while the Hang Seng Biotechnology index experienced a slight decline of 0.7% to 26.3x [2] - A total of 26 industries saw valuation increases, with notable rises in non-ferrous metals (+11.0%), coal (+7.8%), and steel (+7.6%) [2] Earnings Expectations - The earnings per share (EPS) for the Hang Seng Index was slightly revised up by 0.1%, while the Hang Seng Composite Index's EPS increased by 0.2% [3] - The Hang Seng Biotechnology index had the largest EPS upward revision of 2.8%, while the Hang Seng High Dividend index saw a downward revision of 0.2% [3] - A total of 15 industries had EPS upward revisions, with significant increases in electronics (+2.7%) and comprehensive finance (+2.1%) [3]

Investment Rating - The report maintains an "Outperform" rating for the Hong Kong stock market [4] Core Viewpoints - The Hong Kong stock market is experiencing accelerated capital inflow, particularly benefiting the automotive and financial sectors [2] - The Hang Seng Index rose by 2.1% this week, with the automotive sector leading at +6.5% and financials at +3.7% [1][12] - Overall, 23 industries saw capital inflows, with significant contributions from automotive (+1.8 billion HKD/day) and non-bank financials (+0.9 billion HKD/day) [2] Summary by Relevant Sections Market Performance - The Hang Seng Index closed at 23,345, reflecting a weekly increase of 2.1% and a 9.1% rise over the past four weeks [12] - The automotive sector has shown strong performance, with a 58.4% increase year-to-date [16] Capital Flow - The average daily capital intensity for the Hong Kong Stock Connect was +5.2 million HKD/day, up from +1.7 million HKD/day the previous week [2] - The automotive sector is a key beneficiary of this capital flow, indicating strong investor interest [2] Earnings Forecast - The overall EPS forecast for the Hong Kong Stock Connect was revised upward by 0.8%, with 27 industries seeing upward revisions [3] - Notable upward revisions include the automotive sector (+1.5%) and financials, indicating positive earnings momentum [3]