IN00309

<p>The Hong Kong stock market has shown higher resilience in the short term under the expectations of interest rate cuts and policies. Recently, there has been a style shift with sectors such as growth stocks, insurance, essential consumption, and real estate rising. Although there are short-term opportunities, the medium to long-term trend still needs to pay attention to domestic fundamentals and policy developments. Fiscal policy this year may not see significant improvement, and the overall market still tends to experience wide fluctuations</p>

- Hong Kong stocks have seen four consecutive weeks of gains since early August, showcasing greater resilience compared to A-shares. Recent market trends indicate broader gains but also a shift in sector focus, with banking stocks falling while growth sectors like insurance and real estate rise. The ongoing strength of the Renminbi and potential interest rate cuts may offer Hong Kong stocks better flexibility than A-shares in the short term.
- The market outlook suggests that while short-term trading opportunities exist, the long-term trajectory of both A-shares and Hong Kong stocks hinges on domestic fundamentals and policy advancements. Despite potential improvements in policy in the third quarter, the focus remains on implementing existing measures rather than expecting significant stimulus.
- Factors like the recent strength of the Renminbi, potential policy adjustments, and sector rotations contribute to the evolving market landscape. While short-term trading prospects and policy expectations may offer opportunities, the overall market direction depends on sustained progress in domestic policies and economic fundamentals.

The logic behind the rebound and style shift in the Hong Kong stock market