At a time when the Asia-Pacific market fluctuated significantly on July 28, Hong Kong stocks as a whole continued their recent gains. The Hang Seng Index, Hang Seng Technology Index, and Hang Seng China Enterprise Index bucked the trend and closed up. The three major stock indexes have all accumulated gains of more than 5% since July. According to industry insiders, the improvement in the micro liquidity of Hong Kong stocks has refocused the market on the cost-effectiveness of investment in Hong Kong stocks. Southbound capital and foreign capital may return to the market or help improve the trend. However, whether a structural rotation can shift from structural rotation to a trend increase in the future depends on multiple factors such as the geographical conflict in the Middle East and whether energy supply risks can continue to be mitigated. Hong Kong stocks may continue to maintain the operating characteristics of “index fluctuations and sector rotation” in the short term. The value of low-volatility dividend assets as an allocation base position is recognized, and the energy sector, semiconductor and AI infrastructure sectors are also worthy of focus.

At a time when the Asia-Pacific market fluctuated significantly on July 28, Hong Kong stocks as a whole continued their recent gains. The Hang Seng Index, Hang Seng Technology Index, and Hang Seng China Enterprise Index bucked the trend and closed up. The three major stock indexes have all accumulated gains of more than 5% since July. According to industry insiders, the improvement in the micro liquidity of Hong Kong stocks has refocused the market on the cost-effectiveness of investment in Hong Kong stocks. Southbound capital and foreign capital may return to the market or help improve the trend. However, whether a structural rotation can shift from structural rotation to a trend increase in the future depends on multiple factors such as the geographical conflict in the Middle East and whether energy supply risks can continue to be mitigated. Hong Kong stocks may continue to maintain the operating characteristics of “index fluctuations and sector rotation” in the short term. The value of low-volatility dividend assets as an allocation base position is recognized, and the energy sector, semiconductor and AI infrastructure sectors are also worthy of focus.