Every reporter Ren Fei, every editor Zhao Yun

By the close of Hong Kong stocks on Friday, April 26, the Hang Seng Index was up 2. 5%.Cryptomininggameapp.12%, realizing the "five Lianyang", attracting the attention of the market. In the context of the recent repeated pullbacks in overseas stock markets, Hong Kong stocks have stepped out of the independent market and brought confidence to attract global capital to enter the market.

The Hong Kong stock market has been hovering at the bottom for a long time before. Where is the source of the recent rise?Cryptomininggameapp? Industry analysts pointed out that it was mainly boosted by the policy level and the improvement of corporate profits. Xing Cheng, a former Hang Seng Harbour Stock Select mixed fund manager, said that policy-level support measures, including relaxing the range of eligible ETF products for stocks under the Shanghai-Shenzhen-Hong Kong Stock Connect, including REITs into the Shanghai-Shenzhen-Hong Kong Stock Connect, and supporting the inclusion of RMB stock trading counters into the Hong Kong Stock Connect, have to some extent enhanced the risk appetite and investor sentiment in the Hong Kong stock market.

A reporter from the Daily Business News noted that the Hang Seng Internet Technology Industry Index rose 17.23% over the past five trading days, ranking first among the broad-based and narrow-based index ranges, and the performance of mainland public funds that track the index continued to rank at the forefront of QDII (qualified domestic Institutional investors) funds in the most recent week.

The expected marginal improvement of corporate profits

On April 26th, the Hang Seng Index closed at 17651.15 points, up 2.12%. Last week, "Wu Lianyang" stood on the 5th line, showing a strong offensive form. At the same time, the broad-based and narrow-based indexes also rose a lot during the week, especially the related index of science and Internet stocks.

Wind statistics show that the Hang Seng Internet Technology Industry Index rose 17.23% last week, ranking first among all types of Hong Kong indices. The rise of technology growth stocks has also led to the performance of relevant active and passive funds, especially passive index funds that track the Science and Technology Network Index, which have performed very well in the past week.

Take the QDII fund as an example. By the close of trading on April 25, the ETF of Huaxia Hang Seng Internet technology industry had risen by 10.04% in the past week, ranking second only to the overseas interconnected ETF of Yi Fang Da China Securities Co., Ltd. The underlying index stocks of the two funds are different, and the latter lags behind in statistics due to the inclusion of some US technology stocks, superimposing the decline of US technology stocks on April 25, which may further narrow the gap.

The Daily Business News reporter noticed that in the QDII Fund performance ranking for nearly a week, the products tracking the CSI overseas Internet 50 Index and Hang Seng Internet Technology Industry Index were similar and ranked at the top. Compared with the index performance in the past two days, the actual net value disclosure lags behind, and the ranking of products related to tracking Hang Seng Internet Technology Industry Index is expected to be further improved.

Another factor in the recent continuous rebound in Hong Kong stocks is that the marginal improvement in market expectations for corporate earnings has boosted investor confidence.

Xing Cheng said that although it only entered the period of concentrated disclosure of the quarterly reports of Hong Kong stocks in May, the performance guidance of some Internet leading companies before the quiet period exceeded the previous market pessimistic profit forecasts, boosting overall market sentiment at the same time, it also laid the foundation for the profit revision of Internet companies this year.

Southward inflow of the main force is not a public offering.

In the last week, the cumulative net purchase of Hong Kong stocks through the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect has further increased. According to Wind statistics, net purchases of Hong Kong stocks through the Shanghai-Hong Kong Stock Connect reached HK $1.66 trillion in the past week and HK $1.44 trillion through the Shenzhen-Hong Kong Stock Connect in the past week, the highest weekly net purchases this year.

However, southbound funds dominated by mainland public offering funds are not the only main force supporting Hong Kong stocks, on the contrary, other types of funds are becoming more and more optimistic and take practical actions to increase their positions in Hong Kong stocks.

Statistics from CICC Research show that by the end of the first quarter of this year, there were 3488 mainland investable Hong Kong stock public funds (except QDII), with total assets of 2.2 trillion yuan. Although the number of funds increased compared with the fourth quarter of last year, the size decreased by 227.8 billion yuan, accounting for 29.0% and 13.3% of the total 12000 non-goods base and 16.7 trillion yuan respectively. Among them, there are 1916 active partial stock funds, with a total size of 1.5 trillion yuan, a month-on-month decline of 91.6 billion yuan. In terms of issuance, the number and scale of public offering funds that can invest in Hong Kong stocks in the first quarter have slowed down compared with the fourth quarter of last year, with an average monthly issuance of 39, an increase of 42.9 billion yuan. Specific to the active partial stock funds, the issuance also slowed down compared with the fourth quarter of last year, with an average of 21 per month, with an increase of 13.4 billion yuan.

CICC research and analysis believes that the proportion of public offering in southward funds has further declined, at the same time, there may be a small active reduction behavior. The 3370 public offering funds hold Hong Kong shares with a market capitalization of 305.5 billion yuan, down 4.8 per cent from 320.9 billion yuan in the fourth quarter of last year. Consider that during this period, the Hang Seng Index and MSCI China Index fell 3.0% and 2.2% respectively, while the Hang Seng China Enterprises Index rose 0.7%, indicating that public offering funds may have taken the initiative to reduce their holdings. At present, Hong Kong stocks account for 19.0 per cent of the total position, up 0.4 percentage points from 18.6 per cent in the fourth quarter of last year. Taking a further look at active stock-biased funds, Hong Kong stocks held 220.1 billion yuan in the first quarter, with a relatively low month-on-month decline, and the proportion of positions rose to 17.2% from 16.6% in the fourth quarter of last year.

The proportion of public offering in southward capital of 2.3 trillion yuan fell 2.7 percentage points to 13.6%, which also shows that the main force of the recent strong southward capital inflow is not public offering. Judging from the current valuation level of Hong Kong stocks, a judgment has been made on the active funds that want to optimize the allocation in the global equity market.