As of the second quarter of this year, 3,594 domestic public funds (excluding QDII) hold a market value of HKD 375.7 billion yuan in Hong Kong stocks, an increase of 23% from RMB 305.5 billion yuan in the first quarter. Considering that the Hang Seng Index and the MSCI China Index rose by 7.1% and 5.8%, respectively, in the second quarter, while the Hang Seng Tech Index rose by only 2.2%, public funds may have increased their holdings. Currently, Hong Kong stock holdings account for 24.1% of the total, up from 19% in the first quarter. In terms of industry allocation, holdings in new economy and high dividend sectors have both increased, with media and entertainment, banks, and communications services seeing the most growth, while biomedical and food and beverage have declined significantly. The bank pointed out that media and entertainment, banks, and communication services have seen the most improvement, while biomedical, food and beverage, and automobiles have declined. The overall proportion of holdings in the new economy has decreased from 62.8% in the first quarter to 61.6%, while the proportion of old economy sectors has increased to 40%, the highest since 2019. In the second quarter, domestic public funds continued to hold major positions in Tencent, CNOOC, Meituan, and China Mobile. Similar to the first quarter of this year, the above-mentioned industry leaders (Tencent, Meituan, CNOOC, and China Mobile) ranked the top four in terms of market value growth, while China Resources Beer, Yankuang Energy, and Li Auto saw the largest reduction in market value. Xiaomi Group, SMIC, and Construction Bank replaced Li Auto, CMOC Group Limited, and Juzi Bio in the top ten major holdings. Compared with the first quarter, the number of funds holding Tencent, Meituan, and CGN Power increased significantly, but the number of funds holding Li Auto, Genscript Bio, and CMOC Group Limited decreased significantly.