Tracking Hong Kong stocks concept | Foreign capital collectively bullish on Chinese assets "New smart drugs" track becomes the winning and losing hand of investment this year (with concept stocks)

The latest J.P. Morgan Global Sovereign Asset Management research shows that some international investment institutions have shown a clear resurgence of interest in the Chinese market. The survey covers 83 sovereign wealth funds and 58 central banks, managing a total of about $27 trillion in assets. Several foreign institutions have recently stated that as the Chinese economy continues to show stable and positive development trends, policy dividends continue to be released, and corporate profit prospects improve, Chinese assets continue to be favored. More policy measures to enhance the ease of various foreign capital participation in the Chinese capital market are worth looking forward to. Citigroup's latest Asia-Pacific stock market strategy report stated that despite macroeconomic volatility, Asian stock markets continue to outperform their global peers, with the bank expecting the MSCI Asia (excluding Japan) index to have a return of about 7% by mid-2026. Citigroup is optimistic about the Chinese and South Korean markets in the Asian stock market. Citigroup has set the year-end target price for the Hang Seng Index at 25,000 points, with a mid-2026 target of 26,000 points, and for the Shanghai and Shenzhen 300 Index a year-end target of 4,200 points and a mid-2026 target of 4,350 points. The bank expects the MSCI China Index to reach 79 points by the end of this year and 82 points by mid-2026. Goldman Sachs China's chief stock strategy analyst, Liu Jinjin, stated in a media interview at the end of June that, with the weakness of the US dollar, global investors are seeking more diversified investment allocations, and A-shares and Hong Kong stocks are among the benefited markets. For Asian or global diversified investors, apart from Europe, China has the best liquidity in the stock market, and with new investment opportunities in China, such as AI, going global, and new consumption concepts, these are all "rising tides that lift all boats," leading to a significant increase in global investors' interest in Chinese stocks. In addition, Wellington Management also harbors positive views on the Chinese capital market. Wellington Management has listed ten key reasons for the positive reassessment of Chinese assets: attractive valuation and upward potential, continuous improvement in fundamentals, more resilient economic model, policy shift supporting the private sector, countercyclical consumption resilience, stabilization of the real estate market, fiscal support from local governments, advantages of diversified investments, reduced dependence on the US capital market, and deepening trade links with countries outside the United States. The National Bureau of Statistics recently released data showing that GDP in the first half of the year grew by 5.3% year-on-year, an increase of 0.3 percentage points compared to the same period last year and the entire previous year. Given the better-than-expected performance of China's GDP in the first half of the year, several international research teams from various investment banks have raised their expectations for the growth rate of the Chinese economy since July 15: Nomura's chief economist for China, Lu Ting, and his research team stated that they are maintaining their forecasts for China's GDP growth in the second half of this year and 2026, while also slightly raising their full-year 2025 GDP growth forecast to reflect the second-quarter GDP growth exceeding expectations. Morgan Stanley's chief economist for China, Xing Ziqiang, and his team also mentioned in their latest report that China's economy performed strongly in the second quarter, leading them to raise their forecast for actual full-year GDP growth in 2025 by 30 basis points. China Securities Co., Ltd. stated that A-shares have reached a new level, and the three main trends for the second half of the year are: a weak US dollar cycle, policy support for capital markets, and overall loose liquidity. In the short term, there are three key positive factors resonating: improvement in domestic and international macroeconomic environments, high market sentiment, and mid-year validation of structural prosperity. They reiterated that this year's investment race is experiencing a "revival," and that "new smart drugs," representing new consumption, humanoid robotics from Siasun Robot & Automation, artificial intelligence, and innovative drugs, will be the winning sectors for investments this year. Relevant concept stocks: UBTECH ROBOTICS (09880): In March of this year, UBTECH ROBOTICS and Beijing Siasun Robot & Automation Innovation Center jointly launched the 172cm full-size research and education humanoid humanoid robot - Tian Gong Xing Zhe. As of now, Tian Gong Xing Zhe has received orders for hundreds of units. Apart from UBTECH ROBOTICS' industrial humanoid robots like Walker S1, Walker S2, and commercial humanoid robot Walker C, it is expected that the delivery of educational and research humanoid robot Tian Gong Xing Zhe will exceed 300 units this year. ROBOSENSE (02498): ROBOSENSE's technical reserves in the field of humanoid robot components cover perception systems, executive systems, central computing, and ecosystem collaboration, forming a full-stack capability from environmental perception to motion control. ROBOSENSE has also established partnerships with over 20 humanoid robot companies worldwide, including Yushu and Shanghai Siasun. BIDU-SW (09888): Recently, Baidu announced the open-source release of its Wenxin large model 4.5 series, including ten models such as the hybrid expert (MoE) model with 47B and 3B activated parameters and a dense model with 0.3B parameters. This open-source release not only fully discloses the pre-training weights but also provides inference code, marking a significant advancement in Baidu's large model field. Hepibaba (02142): On March 21, Hepibaba reached a major strategic cooperation agreement with AstraZeneca. According to the agreement, AstraZeneca will be granted the option to license two preclinical immune development projects, Hepibaba will receive a $175 million upfront payment, short-term milestone payments, and licensing fees, as well as up to $4.4 billion in development and commercial milestone payments, in addition to tiered royalties on net sales. The two parties will jointly establish an innovation center in Beijing, with a cooperation period of five years, extendable to another five years. Asia-Pacific Select ETF (159687): The Southern Fund's Asia-Pacific Select ETF mainly consists of two types of assets, "Asia-Pacific quality dividend assets and Asia-Pacific semiconductor industry leaders." The ETF includes high-quality dividend assets in the Asia-Pacific region (represented by the Japanese and Chinese markets), such as Toyota, TENCENT, Alibaba, Mitsubishi Group, etc. These companies have stable long-term cash flow and profit capabilities, able to provide relatively stable returns for portfolios. The Asia-Pacific Select ETF also includes high-quality semiconductor companies such as TSMC, Samsung, Tokyo Electronics, and MediaTek, with the largest component stock being TSMC at over 8% of the index weight. Asia-Pacific is at the core of the global semiconductor industry chain. The most direct indicator is the report by Deloitte & GSA in 2024, which states that in 2022, the Asia-Pacific region accounted for 57.6% of global semiconductor industry revenue.