Dongwu Securities said that the Hong Kong stock market has recently weakened, and the Hang Seng Index and the Hang Seng State-owned Enterprises Index have fallen to pre-9.26 positions. In view of this, we are optimistic about the Hong Kong stock market. Currently, it is the second best time to invest in the year. First, the valuation of the Hong Kong market is lower than the historical average, making it one of the lowest-valued stock markets in the world. Second, the weak RMB exchange rate is currently tactical; it may be a response to future tariff challenges. If the tariff rate rises, the RMB may appreciate again. Third, the September 26 Politburo meeting introduced stimulus policies, which had a positive effect on economic growth and corporate profits. Fourth, there have been subtle changes in the capital flows we have observed. First, the impact of previous profit return capital on short-term market fluctuations has basically ended; second, recently, some North American capital is becoming more and more interested in the Hong Kong market, but is still waiting for the domestic incremental policy of December before making a decision; third, the current Hong Kong market turnover has basically returned to a normal level, and market action is basically dominated by institutions. Compared with A-shares, trading behavior tends to be rationalized. In terms of industry configuration, we continue to prefer large consumption, Internet technology, and low PB central state-owned enterprises stimulated by domestic demand policies.

Dongwu Securities said that the Hong Kong stock market has recently weakened, and the Hang Seng Index and the Hang Seng State-owned Enterprises Index have fallen to pre-9.26 positions. In view of this, we are optimistic about the Hong Kong stock market. Currently, it is the second best time to invest in the year. First, the valuation of the Hong Kong market is lower than the historical average, making it one of the lowest-valued stock markets in the world. Second, the weak RMB exchange rate is currently tactical; it may be a response to future tariff challenges. If the tariff rate rises, the RMB may appreciate again. Third, the September 26 Politburo meeting introduced stimulus policies, which had a positive effect on economic growth and corporate profits. Fourth, there have been subtle changes in the capital flows we have observed. First, the impact of previous profit return capital on short-term market fluctuations has basically ended; second, recently, some North American capital is becoming more and more interested in the Hong Kong market, but is still waiting for the domestic incremental policy of December before making a decision; third, the current Hong Kong market turnover has basically returned to a normal level, and market action is basically dominated by institutions. Compared with A-shares, trading behavior tends to be rationalized. In terms of industry configuration, we continue to prefer large consumption, Internet technology, and low PB central state-owned enterprises stimulated by domestic demand policies.