The Hong Kong stock market was under pressure in August due to factors such as hawkish signals from the Federal Reserve Chairman and high long-term US bond yields, and failed to continue the strong rebound trend in July. The adjustment trend continued on September 1. However, judging from the southbound capital flow, the net inflow of southbound capital once again exceeded HK$10 billion in August, and there was no obvious pessimism in the market. According to industry insiders, the current probability of interest rate hikes by the Federal Reserve and rising risk of interest rates on US bonds are suppressing the room for further restoration of Hong Kong stock valuations. The subsequent strengthening of Hong Kong stocks requires performance verification or increased steady growth policies to push profit expectations from partial revisions to the whole. Regarding future market allocation, it is recommended to focus on fields with higher profit certainty or independent catalytic factors. Leading AI applications, the pharmaceutical biotechnology sector, and high-dividend dividend assets are worth paying attention to.

The Hong Kong stock market was under pressure in August due to factors such as hawkish signals from the Federal Reserve Chairman and high long-term US bond yields, and failed to continue the strong rebound trend in July. The adjustment trend continued on September 1. However, judging from the southbound capital flow, the net inflow of southbound capital once again exceeded HK$10 billion in August, and there was no obvious pessimism in the market. According to industry insiders, the current probability of interest rate hikes by the Federal Reserve and rising risk of interest rates on US bonds are suppressing the room for further restoration of Hong Kong stock valuations. The subsequent strengthening of Hong Kong stocks requires performance verification or increased steady growth policies to push profit expectations from partial revisions to the whole. Regarding future market allocation, it is recommended to focus on fields with higher profit certainty or independent catalytic factors. Leading AI applications, the pharmaceutical biotechnology sector, and high-dividend dividend assets are worth paying attention to.