Guosen: The Internet is once again driving the rise of the Hong Kong stock market.

Guosen released a research report stating that the internet sector made another strong push, leading to a rise in the market. This week, the Hang Seng Index rose by 5.6%, and the Hang Seng Composite Index rose by 5.5%. Most concept indices saw a rise, with top performers including the Hang Seng Internet sector (+12.2%), Hang Seng Consumption sector (+5.9%), and the Hang Seng H-Share Index ETF (+5.9%). In the Hong Kong stock connect industry, 28 sectors saw an increase while 2 sectors saw a decrease. Stock performance: Internet sector drives market growth This week, the Hang Seng Index rose by 5.6%, and the Hang Seng Composite Index rose by 5.5%. In terms of style, the market (Hang Seng Large Cap +5.7%) > mid-cap (Hang Seng Mid Cap +4.9%) > small-cap (Hang Seng Small Cap +4.7%). Most concept indices saw a rise, with top performers including: Hang Seng Internet sector (+12.2%), Hang Seng Consumption sector (+5.9%), and the Hang Seng H-Share Index ETF (+5.9%). In the Hong Kong stock connect industry, 28 sectors saw an increase while 2 sectors saw a decrease. The top performing sectors in terms of increase were: Non-ferrous metals (+13.6%), Media (+11.6%), National defense industry (+10.7%), Consumer services (+10.2%), and Textile and Apparel (+10.2%); the sectors that saw decrease were: Petrochemical (-2%), and Miscellaneous (-1.2%). Capital intensity: Funds flowing rapidly into the technology sector This week, there was a significant inflow of funds, with the overall daily average capital intensity of the Hong Kong stock connect being +24.6 billion Hong Kong dollars per day, compared to -21.8 billion Hong Kong dollars per day last week, and an average of +18.1 billion Hong Kong dollars per day over the past 4 weeks; and +6.4 billion Hong Kong dollars per day over the past 13 weeks. In terms of sectors, 26 sectors saw an inflow of funds, while 4 sectors saw an outflow of funds. The sectors with the most inflow of funds were: Media (+7 billion Hong Kong dollars per day), Retail (+4.1 billion Hong Kong dollars per day), Electronics (+2.9 billion Hong Kong dollars per day), Computers (+2.2 billion Hong Kong dollars per day), and Consumer services (+2 billion Hong Kong dollars per day); the sectors with outflow of funds did not show significant decreases. Profit forecast: Steady increase in profit forecasts for most sectors This week, the overall forward EPS for the Hong Kong stock connect rose by 0.4% compared to last week, and remained stable compared to two weeks ago. In terms of structure, 24 sectors saw an increase in EPS forecasts, while 4 sectors saw a decrease, and 1 sector remained stable. The sectors with an increase in forecasts were mainly: Steel (+6.9%), Textile and Apparel (+1.3%), Automotive (+1.3%), Electronics (+1.3%), Computers (+1.2%); the sectors with a decrease in forecasts were: Power equipment and new energy (-4.5%), Building materials (-3.8%), Real estate (-2.2%), Medicine (-1%). Risk Warning: Uncertainty in economic fundamentals, international political situation, US fiscal policy uncertainty, uncertainty in US Federal Reserve monetary policy.