Hong Kong stocks reached a 10-month high on Monday, signaling a positive trend and raising hopes for South Korea's recovery from substantial losses related to equity-linked securities tracking the Chinese index. The Hang Seng China Enterprises Index, which monitors major Chinese stocks on Hong Kong's primary stock exchange, hit an annual peak of 6,954 on Monday, setting new daily records. Despite a slight dip the following day to around 6,909, the index remained 38 percent higher than January's annual low of 5,001. This upward trajectory has been attributed to the Chinese government's measures to bolster the stock market, including the issuance of 1 trillion yuan in ultra-long-term treasury bonds to stimulate the economy. Market observers anticipate that the ongoing upward momentum in the index could mitigate losses for domestic investors in HSCEI-linked ELS products. If the index continues to rise and surpasses certain thresholds, it could shield maturing products from losses. However, analysts caution that the current surge in stock prices may be a temporary "valuation rebound" and emphasize the need for fundamental improvements and stronger government policies for sustained growth. Despite the positive outlook for the Hong Kong stocks, experts warn of potential constraints in the long term due to ongoing instability in China.