From Central Bank Governor Pan Gongsheng's remarks to injecting more momentum into the development of Hong Kong's capital market, to the accelerated entry of southbound capital into the market since July, the recent emergence of a series of internal and external positive factors has formed a synergy to drive the rebound of Hong Kong stocks. According to Wind data, as of the close of July 14, the Hang Seng Index, Hang Seng China Enterprise Index, and Hang Seng Technology Index all rebounded more than 7% since June 29. According to industry insiders, Hong Kong stocks are currently in a recovery window. There is relatively limited room for a sharp decline in the index, and market liquidity is expected to improve in stages from mid-late July to mid-September. However, considering that the market has not yet formed a consistent positive signal on geopolitics and other factors, Hong Kong stocks may still maintain a trend of range fluctuations and structural differentiation in the short term; in terms of allocation, it is recommended to avoid sectors with large short-term gains. In the medium to long term, we can focus on industries and sectors that have the ability to deliver real orders and performance.

From Central Bank Governor Pan Gongsheng's remarks to injecting more momentum into the development of Hong Kong's capital market, to the accelerated entry of southbound capital into the market since July, the recent emergence of a series of internal and external positive factors has formed a synergy to drive the rebound of Hong Kong stocks. According to Wind data, as of the close of July 14, the Hang Seng Index, Hang Seng China Enterprise Index, and Hang Seng Technology Index all rebounded more than 7% since June 29. According to industry insiders, Hong Kong stocks are currently in a recovery window. There is relatively limited room for a sharp decline in the index, and market liquidity is expected to improve in stages from mid-late July to mid-September. However, considering that the market has not yet formed a consistent positive signal on geopolitics and other factors, Hong Kong stocks may still maintain a trend of range fluctuations and structural differentiation in the short term; in terms of allocation, it is recommended to avoid sectors with large short-term gains. In the medium to long term, we can focus on industries and sectors that have the ability to deliver real orders and performance.