Since July 8, the Hong Kong stock market, which had been undergoing adjustments for nearly half a year, has embarked on a rebound. The Hang Seng Index has successfully maintained its position above the 24,000-point threshold, while the Hang Seng Tech Index has achieved its second-largest single-day gain since 2026. Leading the charge in this upswing are technology sectors such as the AI industry chain, semiconductors, and cloud computing.

Industry analysts have observed that in July, the People's Bank of China hinted at a policy shift aimed at increasing the allocation of Hong Kong assets within its foreign exchange reserves. This move, coupled with inflows of foreign capital and pressure from short covering, has collectively propelled the market's rebound. During the first half of the year, the performance of Hong Kong stock market indices was lackluster, marked by a significant "K-shaped divergence."

Institutions now believe that current valuations in the Hong Kong stock market remain at historically low levels, with corporate earnings expectations having hit rock bottom. The AI industry chain, resource commodities, exports of innovative drugs, and the reshaping of global supply chains are anticipated to serve as the primary catalysts for earnings recovery. This suggests that the valuation repair process in the Hong Kong stock market is poised to persist.