The Hang Seng Index closed at 25130.03 points on the 22nd, reaching a new high in three and a half years. Market analysts have expressed that the good trend of Hong Kong stocks rebounding is due to policy support, improved economic prospects, and a combination of valuation advantages. The combination dividend of central policies has brought more liquidity to the Hong Kong market. Previously, the upgrading of the "Bond Connect", the optimization of the "cross-border wealth management link", the implementation of the policy of facilitating housing purchase and payment for Hong Kong and Macao residents, the deepening of cross-border digital RMB pilot, and the five measures announced by the China Securities Regulatory Commission on further optimizing the Shanghai Shenzhen Hong Kong link and helping Hong Kong to enhance its position as an international financial center have driven the Hong Kong capital market all the way forward. Hong Kong economist and director of the Silk Road Wisdom Valley Research Institute, Leung Hoi Ming, stated that as the world's second-largest economy, the country is expected to contribute approximately 21% of global GDP growth in the future, providing solid fundamental support for Hong Kong stocks. The Chief Executive of the Hong Kong Special Administrative Region, Carrie Lam, recently stated that Hong Kong has shone on the world stage, firmly holding the top spot as the world's freest economy, ranking third in the world as an international financial center, and rising to third in global competitiveness. Its talent competitiveness has returned to the top ten globally, and it continues to maintain its position as the world's number one in areas such as investment environment, international trade, commercial regulations, and air cargo volume. In recent years, the SAR government has implemented a series of reform measures for the listing system, optimized the Hong Kong Stock Connect mechanism, developed green finance, and launched the "Science and Technology Enterprise Special Line"... The new stock market has shown a prosperous phenomenon. As of mid July this year, Hong Kong has seen a total of 52 IPOs, an increase of 30% year-on-year, raising HKD 124 billion, an increase of 590% year-on-year, temporarily ranking first in the world, further enhancing the international competitiveness of Hong Kong's capital market. At the same time, the "valuation depression" characteristic of Hong Kong stocks has been prominent in major global capital markets, attracting sustained inflows of international funds and southbound funds from mainland China. Southbound funds have recently accelerated their inflow into Hong Kong stocks, indicating a significant increase in confidence among mainland investors in Hong Kong stocks. Hong Kong Stock Exchange Chairman Tang Ka shing stated that mainland companies listed in Hong Kong now account for 81% of the entire market value. The continuous improvement of Hong Kong stocks further brings positive impacts to the capital markets and economy of Hong Kong and mainland China. Enhancing investor confidence and attracting more domestic and foreign capital inflows can help improve market liquidity and activity. Liu Gang, Chief Analyst of Hong Kong Stocks and Overseas Strategy at CICC Research Department, stated that the active liquidity in the Hong Kong stock market is reflected in an average daily turnover of HKD 240.6 billion, a significant increase from the average daily turnover in 2024 and a historic high. The improvement of corporate financing environment and the increase in willingness to go public and refinancing will help promote the development of key industries such as technology and innovation. Since the beginning of 2025, thanks to the continuous emergence of highlights such as artificial intelligence, new consumption, and innovative drugs, the Hong Kong stock market has remained active and even led the global market at one point, "said Liu Gang. The strong performance of Hong Kong stocks contributes to the formation of a positive interaction in the capital market. Liang Haiming stated that the rise in the stock market reflects the market's positive expectations for the fundamentals of the mainland economy, attracting more global capital's attention and entry. This introduces more mature investment concepts and resources to the capital market, further optimizing the market structure. At the same time, some opinions believe that in order to maintain a good situation in the capital market in Hong Kong, it is necessary to continuously optimize the market environment on the existing basis, attract more long-term funds to enter the market, encourage more high-quality enterprises to list in Hong Kong, enhance market depth and stability, build a more attractive international capital platform, and inject long-term development momentum into the market. Li Jiachao recently stated that the future SAR government will continue to improve the listing system, further promote stock market liquidity, attract more high-quality companies from around the world to list in Hong Kong, and enhance the attractiveness and vitality of Hong Kong as a listing location. (New Society)