CITIC Securities: Looking ahead to August, the semi-annual report performance period will be an important juncture for determining whether the Hong Kong stock market trend will continue.

Citic Securities research report believes that looking ahead to August, the semi-annual report performance period will be an important turning point for the Hong Kong stock market to determine if the trend will continue. Combined with the widespread impact and rapid implementation of the "anti-internal competition" policy, it is expected that in the short term, the market may shift from being driven by liquidity to being driven by performance and policy validation. As the market focus shifts from "expectation" to "realization," stocks that exceed expectations in performance and provide upward guidance are likely to continue to benefit; the marginal changes in the "anti-internal competition" policy will also become a key variable in pricing for corresponding industries. In terms of industry allocation, it is recommended to focus on: 1. Direct beneficiaries of the implementation of the "anti-internal competition" policy such as solar energy, rare earths, lithium, and express delivery, as well as indirect beneficiaries such as insurance; 2. Industries with high prosperity, performance expectations or realization, and potential for upward guidance such as pharmaceuticals and technology; 3. In the low interest rate environment in mainland China, high-quality leading companies with scarcity and stable performance are expected to continue to undergo value reassessment.