BOC International: The market is expected to enter an off-season model for a short time, and the industry allocates high flexibility and high dividends

The Zhitong Finance App learned that BOC International released a research report saying that due to the impact of the National Day and Mid-Autumn Festival holidays, the market is expected to enter a “low season” mode for a short time. Coupled with uncertainty about the US government's short-term financing bill, overseas disturbances will affect or expand. Meanwhile, the market is still divided over the timing and extent of the Federal Reserve's interest rate cuts. The valuations of some high-quality sectors of Hong Kong stocks are close to historical highs, and short-term profit settlement pressure is still there. We can focus on the pace of interest rate cuts by the Federal Reserve, the progress of Sino-US relations, and the mainland's steady growth policy.

The bank recommended that the industry's configuration continue the “high elasticity” + “high dividend” dumbbell strategy, and adjust moderately in conjunction with policy catalysts. October research includes Qifu Technology, Zhifu Industrial Trust (00778), Howell Group, Kuaishou-W (01024), Alibaba-W (09988), Sinotruk (03808), Kangfang Biology (09926), Bubble Mart (09992), and China Electric Power (02380).

The bank said that, driven by technological narratives, investment in computing power at home and abroad continues to grow, and it is expected that mainland investors will still have strong demand for allocating high-quality targets such as AI in Hong Kong stocks.