Market Overview - The US stock market is experiencing consolidation at high levels, with the S&P 500 index reaching new historical highs for three consecutive days [9] - The Hang Seng Index has been on the rise, with attractive valuations continuing to draw investor interest [9] - Tencent's quarterly results exceeded expectations, with AI becoming a core driver for a new round of valuation reassessment [9] - There is a structural preference for high-dividend sectors such as energy, telecommunications, and banking, as well as hard technology sectors like semiconductors and AI [9] - The trading volume in the Hong Kong stock market has reached new highs, with net inflows from the Stock Connect program amounting to HKD 820 billion in the first half of the year [9] Company Focus - Tencent's overseas gaming revenue increased by 35% year-on-year in Q2 2025, benefiting from the recovery of paid markets in Europe, the US, Japan, and South Korea [22] - JD.com reported a 22% revenue growth to RMB 356.7 billion, although its adjusted net profit margin fell by 2.9 percentage points to 2.1% [13] - Lenovo Group's Q1 profit attributable to shareholders was USD 505 million, a year-on-year increase of 108%, despite challenges from US tariff policies [13] Economic Data - In July, China's industrial production grew by 6.0% year-on-year, while retail sales increased by 4.6% [20] - The unemployment rate in China for July was reported at 5.1% [20] - Hong Kong's GDP for Q2 showed a year-on-year growth of 3.1% [20] - Taiwan's GDP for Q2 grew by 8.0% year-on-year [20] Investment Strategy - The report suggests focusing on performance and maintaining a high proportion of AI and technology-related assets while also considering high-dividend stocks [9] - The recommendation includes buying IGG at $5.10 with a target price of $5.82 and a stop-loss at $4.87 [22] - For Eli Lilly and Company, Q2 revenue reached USD 15.56 billion, a 38% year-on-year increase, with net profit at USD 5.66 billion, up 91% [24]