Southbound funds flow significantly into the Hong Kong stock market, analysts recommend focusing on three major directions in the future.

Since the beginning of this year, with continuous net inflows of southbound funds, the Hong Kong stock market has remained active, with the three major indexes performing well. Wind data shows that last week, southbound funds cumulatively bought 33.06 billion Hong Kong dollars over 5 trading days, an increase of 10.88 billion Hong Kong dollars from the previous week. Analysts believe that a cautious optimism should be maintained towards Hong Kong stocks strategically. With stability in the Hong Kong interbank offered rate, increasing expectations of a rate cut by the Federal Reserve, and the end of the mid-year reporting season, it is recommended that investors actively participate in the rally. In terms of sectors, investment opportunities in sectors with high growth rates but low valuations, increasing policy incentives, or continued policy incentives, and high dividend levels should be carefully considered.