After experiencing a short period of increase, the Hong Kong stock market has recently softened. FSMOne stated that the recent rebound in the mainland and Hong Kong stock markets over the past two months was mainly due to China's new round of real estate market rescue measures and GDP data. The target price for the Hong Kong stock market remains at 18,500 points, while the US economy remains strong and is unlikely to cut interest rates this year. Qian Jianhao, portfolio manager of FSMOne (Hong Kong), stated that based on a target price-to-earnings ratio of 9, the target price for the Hang Seng Index in 2024 is 18,500 points, continuing the pattern of "volatile without significant increases." He mentioned that the upside and downside potential for the Hong Kong stock market is limited, and the mainland government may implement a series of favorable policies to drive a rebound at low points, but the upward trend may not be long-lasting. Qian Jianhao pointed out that the recent rebound in the mainland and Hong Kong stock markets over the past two months was mainly due to China's new round of real estate market rescue measures and better-than-expected GDP data. Although the mainland government's proactive market rescue attitude has provided some support to the overall mainland and Hong Kong stock markets, the recently introduced 517 new policies have not yet been fully reflected in the fundamentals. The real estate market still faces five major challenges: sluggish sales; price-cutting sales; financing difficulties; rigid expenses and taxes associated with transaction fees; inability to use presale regulatory funds for debt repayment. Looking at the latest sales data from the top 100 real estate companies in the mainland, the downward trend in the Chinese real estate market has not been reversed, reflecting weak confidence from investors and local residents in the real estate market. Looking ahead to the second half of the year, Qian Jianhao expects the United States' inflation pressure to remain high and difficult to fall to the target level of 2% in the short term. The tense geopolitical situation in the Middle East, along with the strong momentum of the US economy, will likely keep inflation at a high level for an extended period. If the Federal Reserve takes early action to cut interest rates in a stable economic environment, it may pose a risk of inflation getting out of control again. Therefore, the Fed is expected to maintain a cautious stance and refrain from cutting interest rates until inflation is fully under control. Shi Jiasong, assistant research manager of the global bond department of FSMOne (Hong Kong), stated that the current high inflation is likely driven by structural factors. Factors such as rising rents, wages, commodity prices, deglobalization, and geopolitical tensions will keep inflation hovering at high levels, and high bond yields and interest rates may persist for a longer period, with a possibility of no rate cut this year. In summary, FSMOne stated that the Federal Reserve is likely to refrain from cutting interest rates until 2024. FSMOne (Hong Kong) also recommends picking multiple funds for a diversified core portfolio. Details are as follows: