According to a recent report from CITIC Securities, analysts Xu Guanghong, Chen Caifu, and Hou Suyang have expressed optimism regarding the Hong Kong stock market's potential for continued rebound. In the first half of this year, the market faced significant challenges, with the Hang Seng Index and the Hang Seng Tech Index dropping by 10.7% and 18.9% respectively, largely due to downward adjustments in earnings expectations and the siphoning of funds into overseas AI infrastructure trades.

However, as overseas trading momentum continues to slow and expectations for interest rate hikes by the Federal Reserve diminish, sectors that previously experienced steep declines, such as healthcare, technology, consumer discretionary, and metals, are beginning to drive a recovery in the Hong Kong market. The report notes that this week, the leading sectors in the Hong Kong market are primarily those with the highest proportion of outstanding short positions.

CITIC Securities highlights that the overall proportion of outstanding short positions in the Hong Kong market has surged to historical highs. As internal and external disruptive factors gradually ease, there is significant room for a market correction. The analysts expect that the rebound in the Hong Kong stock market is likely to continue, advising investors to focus on sectors with high certainty in fundamentals and potential catalysts, including innovative pharmaceuticals, aviation, robotics, and metals with strong industrial properties.