Hong Kong stocks led the global market in July, with structural market trends reflecting the logic of valuation repair.

In July, the Hong Kong stock market reversed its weak performance from June and welcomed a strong rebound. According to Wind data, the Hang Seng Index rose by over 2,800 points in July, a gain of 13.13%, leading the major global stock indices. Analysts believe that the strong performance of Hong Kong stocks in July is the result of the interplay among the effects of valuation gaps, global capital rebalancing, and the spreading of the AI market. Against the backdrop of increased volatility in major global markets, Hong Kong stocks, with their relatively low absolute valuations and clearer industrial trends, have become an important platform for capital rotation. However, after a rapid short-term increase, the phase of smooth valuation repair may have already passed, and the subsequent market trends will require further verification from fundamental data.