According to the Huatai Securities Research Report, the current sentiment in Hong Kong stocks has quickly recovered to a neutral level. Whether it is southbound, foreign investment, or short selling data, fluctuations have slowed down, and capital has rebalanced or entered a period of rest, waiting for further catalysts to emerge. Looking back, Hong Kong stocks are at a crossroads. Hedging positions may have been closed halfway. The negative correlation between Hong Kong stocks and peripheral markets has weakened, while fundamentals have yet to be picked up. The upward momentum in profit expectations has cooled down again, and the mid-reporting season is approaching or there is still uncertainty about verification. Therefore, in terms of allocation, we recommend a balanced response: low-wave dividends as a base position, such as banks; insurance and dairy products, some retail, etc. that are expected to make up for an increase in interim reporting performance or rebalancing; and foundry and innovative drugs that are suppressed by global deleveraging but are still booming, panic falls or creates a fund-raising window.

According to the Huatai Securities Research Report, the current sentiment in Hong Kong stocks has quickly recovered to a neutral level. Whether it is southbound, foreign investment, or short selling data, fluctuations have slowed down, and capital has rebalanced or entered a period of rest, waiting for further catalysts to emerge. Looking back, Hong Kong stocks are at a crossroads. Hedging positions may have been closed halfway. The negative correlation between Hong Kong stocks and peripheral markets has weakened, while fundamentals have yet to be picked up. The upward momentum in profit expectations has cooled down again, and the mid-reporting season is approaching or there is still uncertainty about verification. Therefore, in terms of allocation, we recommend a balanced response: low-wave dividends as a base position, such as banks; insurance and dairy products, some retail, etc. that are expected to make up for an increase in interim reporting performance or rebalancing; and foundry and innovative drugs that are suppressed by global deleveraging but are still booming, panic falls or creates a fund-raising window.