Core Viewpoint - The southbound capital experienced a rare net outflow exceeding 18 billion HKD in a single day, driven by short-term risk aversion and profit-taking during a market rebound [2][3][8]. Group 1: Market Performance - On August 4, the Hong Kong stock market indices showed a slight rebound, with the Hang Seng Index rising by 0.92%, the Hang Seng Tech Index increasing by 1.55%, and the Hang Seng China Enterprises Index up by 1.01% [2]. - The total market turnover was approximately 234.7 billion HKD, with southbound capital transactions amounting to about 130.1 billion HKD [2]. Group 2: Southbound Capital Flow - The southbound capital recorded a net outflow of 18.092 billion HKD, marking the largest single-day net sell-off since May 12 [3]. - The Shanghai-Hong Kong Stock Connect saw a net outflow of approximately 11.124 billion HKD, while the Shenzhen-Hong Kong Stock Connect experienced a net outflow of about 6.968 billion HKD [3]. Group 3: ETF Activity - Three major high-liquidity ETFs in Hong Kong were significantly sold off, with the top three ETFs experiencing net outflows of 14.534 billion HKD, 6.325 billion HKD, and 1.453 billion HKD respectively [8]. - The year-to-date returns for these ETFs have exceeded 20%, indicating strong performance prior to the sell-off [8]. Group 4: External Environment and Individual Stocks - Concerns regarding the trade environment, particularly following agreements made by Trump with multiple countries, have raised fears about potential impacts on Hong Kong's export-oriented companies and Chinese concept stocks [8]. - Despite the outflows, certain individual stocks like Alibaba, InnoCare, and Kuaishou saw net inflows of 728 million HKD, 363 million HKD, and 220 million HKD respectively, indicating selective investment behavior [9]. - InnoCare's stock surged by 30.47% to 75.15 HKD per share after announcing a partnership with NVIDIA to promote the large-scale implementation of an 800-volt direct current power architecture in AI data centers [9].