Since August, the net inflow of capital to the south has continued, and the capital level of the Hong Kong stock market has continued to improve. Since this year, with the exception of a phased net outflow in May, the overall allocation of southbound capital has remained strong. Net purchases in June and July reached HK$27.111 billion and HK$62,869 billion respectively. The trend of capital return is obvious. Meanwhile, major indices of Hong Kong stocks have continued to recover recently. Since June 26, as of August 4, the Hang Seng Index and Hang Seng Technology Index have increased by a cumulative total of 12.03% and 10.89% respectively, and market risk appetite has gradually rebounded. Analysts believe that as foreign capital flows improve, southbound capital continues to increase, and Hong Kong stock valuation repair progresses, the capital side is becoming an important factor supporting the Hong Kong stock market. Currently, capital flows mainly to the IT industry, non-essential consumption, finance and other sectors. Technological growth and core assets are still important directions for capital allocation. However, the agency also suggested that changes in overseas liquidity, AI industry chain transaction verification, and global risk factors may still disrupt the market. Hong Kong stocks may still show a pattern of shock recovery in the short term, and future attention should be paid to structural opportunities brought about by changes in capital flows.

Since August, the net inflow of capital to the south has continued, and the capital level of the Hong Kong stock market has continued to improve. Since this year, with the exception of a phased net outflow in May, the overall allocation of southbound capital has remained strong. Net purchases in June and July reached HK$27.111 billion and HK$62,869 billion respectively. The trend of capital return is obvious. Meanwhile, major indices of Hong Kong stocks have continued to recover recently. Since June 26, as of August 4, the Hang Seng Index and Hang Seng Technology Index have increased by a cumulative total of 12.03% and 10.89% respectively, and market risk appetite has gradually rebounded. Analysts believe that as foreign capital flows improve, southbound capital continues to increase, and Hong Kong stock valuation repair progresses, the capital side is becoming an important factor supporting the Hong Kong stock market. Currently, capital flows mainly to the IT industry, non-essential consumption, finance and other sectors. Technological growth and core assets are still important directions for capital allocation. However, the agency also suggested that changes in overseas liquidity, AI industry chain transaction verification, and global risk factors may still disrupt the market. Hong Kong stocks may still show a pattern of shock recovery in the short term, and future attention should be paid to structural opportunities brought about by changes in capital flows.