Guotai Junan Securities: The liquidity easing window for Hong Kong stocks has arrived.

Fang Yi, Chief Strategy Analyst at Guotai Junan Securities, released a report stating that from late July to mid-September, the micro-funds situation in the Hong Kong stock market is expected to see a relief window. Regarding the reasons, Fang Yi stated that, on one hand, Hong Kong IPOs are currently in a slow season, continuing until the end of September; on the other hand, the peak of restricted stock unlocking in early July has passed, and Hong Kong stocks will see a significant amount of over 30 billion Hong Kong dollars in unlocking. Meanwhile, the possibility of a correction in overseas interest rate hike expectations is increasing. Since June, the traffic volume in the Strait of Hormuz has significantly improved, and oil prices have fallen from their highs. It is expected that the marginal weakening of imported inflationary pressure in the United States will provide room for a correction in interest rate hike expectations over the next two months. However, Fang Yi stated that there are still several risks in overseas liquidity that need to be vigilant: first, unexpected strengthening of the US dollar index; second, if the Hong Kong dollar reaches a weak-side guarantee or triggers intervention by the HKMA, liquidity tightening; and third, uncertainties remain in the US-Iran conflict.