Market sentiment is improving, and it's time to seize opportunities in the Hong Kong stock market!

Market expectations for a rate hike by the Federal Reserve have decreased, and Hong Kong stocks are expected to see capital inflows. The release of the US May Core PCE Price Index, which came in at an annual rate of 4.6%, lower than expected, is expected to alleviate market panic. In mid-June, Hong Kong stocks experienced a volatile decline amid expectations of a rate hike, but with the improvement in market sentiment, Hong Kong stocks are expected to see a return of liquidity.

Against the backdrop of a weak economic recovery, Hong Kong stocks present investment opportunities. The slight rebound in the PMI index in June indicates that the driving force behind the comprehensive economic recovery is further strengthening, and the foundation of the economic rebound is being consolidated.

In the long run, with the stabilization and recovery of the economy and the continued release of policy effects, the economic performance is expected to continue to improve in the third and fourth quarters, with the accumulation of positive factors. If relevant policies are implemented in the future or economic data confirms the recovery, the market is expected to return to an upward trajectory.

In terms of investment direction, it is recommended to focus on:

1. Technology stocks in the semiconductor, communication, and electronics sectors, which combine industry prosperity with the AI theme.

2. Consumer recovery will remain a core theme throughout the year, so it is advisable to focus on the consumer sector with stable or continuously improving performance.

3. "Belt and Road" related sectors, such as construction and decoration, petroleum and petrochemicals, banking, and coal industry.