Someone asked, since both are backed by the Chinese economy, why has the Hong Kong stock market been strong while the A-share market has been weak this year? The factors determining stock price trends are: 1. Performance (how much money is earned); 2. Cash returns (how much is distributed); 3. Valuation (how much you have to pay to buy); 4. Liquidity (whether there are more buyers or sellers). While both the Hong Kong and A-share markets are indeed backed by the Chinese economy, this only determines the first point (in fact, Hong Kong stocks have a much higher proportion of leading Chinese companies compared to A-shares, meaning this aspect is still better for Hong Kong stocks). Points 2 and 3 are clearly in favor of Hong Kong stocks. For point 4, Hong Kong stocks were heavily affected when foreign capital concentrated on outflows in the past two years, but this year it seems that those who wanted to withdraw have already done so, so the marginal impact has diminished significantly. The result is that Hong Kong stocks have even entered a technical bull market (the ETF of the Hang Seng China Enterprises Index has risen by more than 20%), even outperforming this year's U.S. stocks and significantly surpassing the much-hyped Japanese stocks. Recently, the A-share market has introduced some policies allowing borrowing for buybacks. Let's wait and see if the amount of stock buybacks and cancellations in the A-share market can surge like in Hong Kong! $Honghu Hongfu Active Allocation Phase 1 (P001569)$ $Honghu Steady Macro Hedge (P001576)$