Fundamental improvement coupled with ample liquidity, institutions believe that Hong Kong stocks may reach new highs in the second half of the year.

Since the beginning of this year, the performance of the Hong Kong stock market has been impressive. As of the close on June 17, the Hang Seng Index has accumulated a rise of over 19%. The Hang Seng Technology Index has accumulated a rise of over 18%. Stocks with a total market value of over 1 trillion Hong Kong dollars in the Hang Seng Index have all risen, with the largest increase being Xiaomi Group-W, which has risen over 56%. Tencent Holdings, with the largest market value, has risen over 24%. Technology, dividend, and consumer stocks have all performed well. The impressive performance of the Hong Kong stock market is due to the continuous inflow of incremental funds. Since the beginning of this year, Southbound funds have continuously increased their positions in the Hong Kong stock market, with a total net inflow of over 690 billion Hong Kong dollars, reaching a historical high for the same period in 2024, more than double. Institutional personnel believe that external disturbances have a relatively limited impact on the fundamentals of Hong Kong stocks, and corporate profits still have resilience. Southbound funds may continue to flow into the Hong Kong stock market, providing support. With the domestic stable growth policy boosting Hong Kong stock performance and the improvement of the global liquidity environment, Hong Kong stocks are expected to see a dual improvement in fundamentals and risk preferences, embarking on a journey to reach new highs.