CITIC Securities: It is recommended that investors follow the timing allocation opportunities from the announcement date of the Hang Seng Composite Index to the effective date of the Hong Kong Stock Connect.

Jinshi Data, July 17th, CITIC Securities stated that the Hang Seng Composite Index will usher in a new round of review results on August 16th. This adjustment will officially take effect on September 9th, and the Hong Kong Stock Connect will also correspondingly adjust. We expect that there will be 20 targets included in the Hong Kong Stock Connect, with higher weights in the information technology, optional consumption, and energy zone market capitalization. If Alibaba-SW successfully converts to dual primary listing at the end of August, it may be included in the Hong Kong Stock Connect in this review. We also recommend that investors follow the announcement date of the Hang Seng Composite Index to the effective date of the Hong Kong Stock Connect for timing allocation opportunities. In addition, due to the advance layout of some arbitrage funds before the effective date of the Hong Kong Stock Connect, and the passive funds are more likely to adjust their positions before the trading day before the effective date, some individual stocks with poor liquidity may experience a surge in volume at the end of the trading day.