This report evaluates how global markets are responding to recession fears, highlighting impacts from regional economic policies. It details Japan's Nikkei 225 downturn following a rate hike, labor market slowdown in the US, gold's increased stability value, major fluctuations in crypto and the correction of Chinese stock market amidst current global uncertainty.

The demand for crypto-backed financing is expanding as altcoins like Solana gain prominence, offering diverse opportunities beyond Bitcoin and Ethereum. These altcoins are attracting attention due to their innovative features and potential for high returns, supported by technological advancements and strategic partnerships.

The first half of 2024 featured strong economic performances in the US and Japan, contrasted by challenges in China, while the crypto market evolved significantly. The second half focuses on geopolitical impacts, interest rate changes and the crypto landscape's continued development.

This report examines the rapid advancements in Artificial Intelligence (AI), particularly the emergence of large language models like OpenAI's ChatGPT and their impact on the technology sector. It provides a comprehensive overview of key industry players and analyzes their influence on stock markets in the US and China. Notable AI proxy stocks include NVIDIA, AMD, Microsoft, Meta, Google and TSMC listed in the US, and SenseTime, Baidu and Tencent listed in Hong Kong.

In Volume 43, issued March 14, 2024, we highlighted the Hang Seng Index's attractive valuation at a P/E ratio of 8x, which rose to 9.5x by May 20, 2024, after a 16% rally driven by supportive policies. Volume 45 continues our analysis, focusing on the factors from April and May 2024 that fueled the index’s recovery and examining how regulatory changes, geopolitical tensions, and economic stimuli have influenced the Hong Kong capital market from 2020 through 2024.

This edition details the evolution of the crypto market in 2023 and 2024, which have been pivotal periods. Bitcoin, Ethereum and Solana prices have recovered, surged and gained confidence among investors. Key developments like Bitcoin ETF approvals and Ethereum's upgrades highlight increased institutional adoption and technological progress in the crypto ecosystem. This growth reflects a transformative shift in the financial landscape, positioning crypto as viable components of investment portfolios, outperforming traditional assets.