Haitong International recently issued a research report believing that the influx of incremental funds will boost A-shares, while global risk appetite may face pressure in stages ahead of the Jackson Hole symposium.

Last week, the A-share market entered an accelerated rally phase, while US stocks remained cautious ahead of the meeting, only recovering this week's losses after Fed Chair Jerome Powell turned dovish.

Related NewsM Stanley Lists Latest HK Focus List (Table)
Recently, multiple positive factors boosted A-shares, including continued technological breakthrough, the SHCI breaking through 3,700 and 3,800 continuously, and a significant increase in the probability of the Fed cutting interest rates in September.

For this week, A-shares are facing a sharp rise after positive news, with the SHCI likely to directly challenge 3,900 at the open, very close to the 4,000 target set in the broker's annual outlook. The room for further upside in the short term may be limited.

Last week's Hong Kong stock market trend was still constrained by liquidity and exchange rate factors, Haitong International added. In terms of liquidity, the 1-month HIBOR rose sharply to 2.77%, exerting significant pressure on the Hong Kong equity market. The HSI ascended slightly for the week last Friday, driven by A-shares.

Related NewsJPM Expects MSCI China Index, CSI 300 Index to Have Potential Upside of 35%, 24% by End-2026
In terms of exchange rates, the Hong Kong stock market is highly sensitive to the USD index. In terms of individual stocks, large-cap techs continued to attract southbound capital inflows, with TENCENT (00700.HK)  -5.000 (-0.835%)    Short selling $2.03B; Ratio 15.725%   seeing a significant increase in net inflows to $4.6 billion.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-08-28 16:25.)