September 26th - As of the close, today's Hong Kong securities index rose by 6.1%, the CSI 300 non-bank financial index rose by 5.8%, 

the China Securities All Share Securities Company Index rose by 5.7%, and the China Securities Bank Index rose by 3.6%. In the A-share market, 

all three major indices rose by more than 3%, with the Shanghai Composite Index standing above 3,000 points, 

and the annual K-line has turned positive. More than 5,100 stocks in the entire market rose, with over a hundred stocks hitting the daily limit up.

This is what we mentioned yesterday: "The wind is coming!!"

The recent seven-day winning streak in Hong Kong stocks is due to investors' positive expectations for interest rate cuts in the United States, 

and the Federal Reserve's interest rate cut of 50 basis points exceeded expectations, increasing market liquidity. The Hong Kong stock market

 benefits from the US interest rate cut, improving its liquidity and valuation.

The Hang Seng Index has fallen for four consecutive years, and its valuation is currently at a historical low, with a price-to-earnings 

ratio of about 9 times, lower than the ten-year average level.

The interest rate cut by the Federal Reserve may indirectly improve China's economic fundamentals, easing the pressure on the yuan exchange rate.

 It is expected that domestic monetary policy will be relaxed, which will help the economy to improve.

Although China's economy and consumption are at a low level, they have improved, and the policy bottoming effect is evident. 

The Hong Kong stock market's semi-annual report exceeded expectations, especially the performance of leading internet and 

technology companies, reflecting the repair of the domestic economy. Currently, the Hong Kong stock market has low valuations, 

improved liquidity, and a valuation repair trend. The appreciation of the yuan against the US dollar has increased the attractiveness of Chinese assets to overseas capital.

In addition, the MU financial report we mentioned the day before yesterday exceeded expectations and has also been realized! Have you kept up with the pace?

What are the opportunities for Chinese concept stocks?

1. Pinduoduo: In the second quarter of 2024, Pinduoduo achieved a revenue of 97.06 billion yuan, a year-on-year increase of 86%,

 but the growth rate has slowed down. Its Non-GAAP net profit was 34.43 billion yuan, a year-on-year increase of 125%. However, 

after the financial report was announced, the stock price fell by 28%. The market attributed this decline to the management's lowering 

of investor expectations in the conference call, including the possibility of profit decline and no stock buyback or dividend in the short term.

2. Alibaba: Alibaba's revenue in the first quarter of the fiscal year 2025 was 243.24 billion yuan, a year-on-year increase of 4%. 

Its e-commerce segment, Taobao Tian Group, had a revenue of 113.37 billion yuan, a year-on-year decline of 1%, but the GMV and 

order volume achieved high single-digit and double-digit growth, respectively. Alibaba CEO Wu Yongming said that live broadcasting 

and the billion-yuan subsidy plan brought high user revisit rates and repurchase rates, and it is expected that most businesses will achieve a break-even point within 1-2 years.

3. JD.com: JD.com's revenue in the second quarter was 291.3 billion yuan, with a revenue growth of only 1%, 

but the adjusted net profit was 14.5 billion yuan, a year-on-year increase of 68.6%. This growth is mainly due to 

the increase in gross margin. In the second quarter, JD.com's gross margin reached 15.8%, an increase of 1.4 percentage

 points compared to the same period in 2023, which is not only due to the retail business but also due to the improvement of the logistics business.

4. Tencent: Tencent Holdings' revenue in the second quarter was 161.117 billion yuan, a year-on-year increase of 7.98%,

 and net profit (Non-IFRS) was 57.313 billion yuan, with a growth rate of 53%. Meituan's revenue in the second quarter was 82.3 billion yuan, 

a year-on-year increase of 21%, and the adjusted pre-tax profit reached 13.6 billion yuan, a year-on-year increase of 77.6%.

5. Ctrip: Against the backdrop of the recovery of the tourism market, the performance of OTA platforms has also ushered in an explosive period. 

Ctrip's revenue in the second quarter was 12.8 billion yuan, a year-on-year increase of 14%, and the net profit was 3.9 billion yuan, a year-on-year increase of 51.85%.

6. Bilibili: Bilibili's financial report for the second quarter of 2024 shows that the revenue increased by 16% year-on-year, reaching 6.13 billion yuan, 

with advertising business revenue increasing by 30% year-on-year, and game business revenue increasing by 13%.