In recent months, the mainland China and Hong Kong stock markets have shown clear signs of recovery. Angela Chung, senior fund manager at Allianz Investment, said that last year everyone was selling off Chinese assets, causing the mainland China and Hong Kong stock markets to underperform emerging markets. This year, global funds have started to reduce their underweight positions, including funds from the Middle East and Southeast Asia. The Chinese government is gradually increasing market confidence, and as long as the economy continues to grow steadily, the stock market will be able to move steadily upward. Chung pointed out that most Chinese stocks are still undervalued, with some trading at price-to-book ratios even below 1, reflecting concerns that the macroeconomic recovery may not be sustainable and that the real estate market is still sluggish. Therefore, in the second half of the year, investors should pay attention to changes in fund flows and the Chinese macroeconomic situation. Chung believes that if more global funds flow into the mainland China and Hong Kong markets, blue-chip stocks, such as internet stocks, will benefit. After experiencing a major adjustment last year, their valuations are now more reasonable, and many companies are returning value to shareholders through dividends or buybacks, making returns more attractive. As there is a phenomenon of consumption downgrading in the mainland, Chung pointed out that the mainland consumer market is becoming more mature and information flows freely. Therefore, investors should carefully choose individual consumer stocks. There may be a situation of survival of the fittest after the epidemic, so demand is crucial. It is recommended to look for companies with increasing market share. Travel-related stocks are expected to perform well, while healthcare and education stocks are also worth paying attention to. Although there are signs of stabilization in the domestic real estate market, Chung expects the liquidation of domestic real estate to continue. It is important to watch whether the Chinese government will focus on addressing the real estate issue in the future, as the adjustment of real estate stocks is not yet complete due to the involvement of many different parties. Therefore, the domestic real estate market will remain stable this year, without significant gains, and the profit prospects of real estate stocks still pose challenges, so a cautious view is maintained on them.