Foreign investment intentions are increasing, and Hong Kong's stock market is expected to usher in a window for valuation repair.
Recently, driven by multiple positive factors, the Hong Kong stock market has seen a long-awaited rebound. Market data shows that the Hang Seng Tech Index rose by 5.72% last week, marking the largest weekly increase so far this year. Since the beginning of this week, the Hang Seng Tech Index has continued to rebound, with an increase of 5.17% as of July 9th. Behind the warming market sentiment, the influx of incremental funds has become a core driving force. From external funds, Korean investors have recently increased their holdings in the Hong Kong tech sector, with foreign capital showing an increased willingness to invest. On the domestic front, Southbound funds have already surpassed 45 billion Hong Kong dollars in net inflows since the beginning of this week, potentially reaching a new high for the year in terms of net buying volume. Industry insiders analyze that the current strong resonance between overseas incremental funds and Southbound domestic funds, coupled with the overall low valuations of Hong Kong stocks, continuous policy support for the Hong Kong capital market, and steady improvement in market fundamentals, provide multiple favorable support for the Hong Kong stock market and the possibility of a valuation restoration window could come soon.
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