Regulatory voices boost confidence, liquidity has improved in stages, and the value of Hong Kong stocks continues to rise.

From the voice of the Governor of the Central Bank, Pan Gongsheng, injecting more momentum into the development of the Hong Kong capital market, to the acceleration of Southbound funds entering the market since July, a series of positive factors both internally and externally have recently emerged to drive the rebound of Hong Kong stocks. Wind data shows that as of the close on July 14, the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Technology Index have all rebounded more than 7% since June 29. In the eyes of industry insiders, Hong Kong stocks are currently in a window of catch-up, with relatively limited downward space for the index, and market liquidity is expected to see a phased improvement from the second half of July to the middle of September. However, considering that the market has not yet formed a consistent positive signal on geopolitical factors, Hong Kong stocks may still maintain a trend of range-bound volatility and structural differentiation in the short term; in terms of allocation, it is recommended to avoid chasing sectors with large short-term gains, and to focus on industries and sectors with real orders and performance realization capabilities in the medium to long term.