On June 17, Guosen Securities issued a report stating that the Hong Kong Stock Exchange fell 13% from its high in May, while the Hang Seng Index fell 8% during the same period. The current valuation is a PE ratio of 27 times in 2024. As the daily average turnover of Hong Kong stocks rose from HKD 99 billion in the first quarter to HKD 126 billion in the second quarter, the bank expects the Hong Kong Stock Exchange's profit in the second quarter to turn to growth, with IPO business as a focus. In addition, the bank pointed out that as July 1 approaches, the mainland is expected to announce more details of previously announced policies supporting the Hong Kong market in the next two to three weeks, such as ETF expansion, inclusion of real estate investment trusts in the Shanghai-Hong Kong Stock Connect, etc. If there are any policies such as lowering dividend taxes or other surprise measures, it will be a positive for the market, but not in the bank's basic assumptions. As the Hong Kong Stock Exchange is expected to be the main beneficiary, the bank reiterates the “buy” rating.