Hong Kong stocks rose again in July, with the Hang Seng Index and Hang Seng Tech Index both gaining over 2.8%, while the Hang Seng Stock Connect Index surged by 4.7%. The upward trend continued to attract capital inflows. In July, the Stock Connect channel saw an inflow of RMB 125.2 billion, up more than 70% compared to June. Industry insiders noted that since the beginning of the year, the Hong Kong stock market has experienced synchronized inflows from both domestic and foreign capital, maintaining loose liquidity conditions.

How to seize investment opportunities in Hong Kong stocks going forward? Guosen Securities’ latest research report highlights that, based on three key dimensions—cyclical gains, AH premium rates, and broad-based index valuations—Hong Kong stocks remain within a reasonable valuation range compared to A-shares. Key investment focuses include: undervalued internet and AI leaders, Hong Kong-listed innovative pharmaceuticals benefiting from ongoing sentiment reversals, resources and commodities boosted by "anti-involution" policies, resilient new consumer sectors, and non-bank financial institutions with improving performance.

Industry experts pointed out that ETFs closely tied to these themes—such as the Hong Kong Stock Connect Tech ETF (159262), Hong Kong Innovative Pharma ETF (513120), Hang Seng Consumer ETF (159699), and Hong Kong Stock Connect Non-Bank Financial ETF (513750)—are highly targeted, pure-play instruments ideal for capturing these opportunities.

Driven by both valuation recovery and ample liquidity, these four ETFs cover four core sectors: tech, innovative pharma, new consumer, and non-bank financials. They combine the advantages of scale, liquidity, high purity, and trading convenience, offering investors an efficient toolkit for accessing Hong Kong market opportunities. Institutional analysis suggests that as "anti-involution" policies deepen and global inflation expectations rise, the medium-to-long-term value of Hong Kong’s tech and pharma sectors stands out, while the earnings recovery trends in new consumer and non-bank financials are expected to persist. Investors are advised to align with their risk preferences and capitalize on niche opportunities.