Huatai Securities pointed out that Hong Kong stocks have recently experienced significant fluctuations. The three factors behind recent fluctuations in Hong Kong stocks are: changes in policy expectations, marginal tightening of overseas liquidity, and heightened geopolitical risks. The first of these may be the main cause. After adjustments, we believe that Hong Kong stocks may now be close to the support level. The most important factor is that judging from policy expectations, corporate profit expectations, and US dollar liquidity expectations, the current internal and external comprehensive environment is significantly better than in mid-June-July, and the current risk premium for Hong Kong stocks is close to that time. Looking ahead, we think Hong Kong stocks are likely to fluctuate in the current support area before early November. Momentary factors such as the US election, three-quarter reports, and policy verification will still be disrupted, but the release of sentiment may have basically been put in place. In terms of allocation, it is recommended to focus on US bond interest rate sensitivity+improved profit expectations, such as the pharmaceutical and internet sectors.

Huatai Securities pointed out that Hong Kong stocks have recently experienced significant fluctuations. The three factors behind recent fluctuations in Hong Kong stocks are: changes in policy expectations, marginal tightening of overseas liquidity, and heightened geopolitical risks. The first of these may be the main cause. After adjustments, we believe that Hong Kong stocks may now be close to the support level. The most important factor is that judging from policy expectations, corporate profit expectations, and US dollar liquidity expectations, the current internal and external comprehensive environment is significantly better than in mid-June-July, and the current risk premium for Hong Kong stocks is close to that time. Looking ahead, we think Hong Kong stocks are likely to fluctuate in the current support area before early November. Momentary factors such as the US election, three-quarter reports, and policy verification will still be disrupted, but the release of sentiment may have basically been put in place. In terms of allocation, it is recommended to focus on US bond interest rate sensitivity+improved profit expectations, such as the pharmaceutical and internet sectors.