Zheng Quan Shi Bao Wang·2025-10-09 00:28Core Viewpoint - The continuous rise of Hong Kong stocks since early September is driven by ample liquidity and ongoing investments and innovations in AI [1] Group 1: Market Dynamics - Southbound capital is expected to continue flowing into Hong Kong stocks due to the "wealth effect" [1] - The anticipated election of high-profile candidates, such as the potential new Japanese Prime Minister, could lead to arbitrage trading by Japanese investors benefiting Hong Kong stocks [1] Group 2: AI and Technology Sector - Increased capital expenditure by domestic and international companies in the AI sector, along with continuous iterations and innovations in large models and applications, may lead to performance realization in Hong Kong's complete AI and technology industry chain [1] - Despite a six-month valuation expansion, the current absolute valuation of Hong Kong stocks is not cheap [1] Group 3: Future Outlook - The fundamentals are expected to rebound, and with projected high growth in earnings by 2026, Hong Kong stocks remain significantly attractive on a global scale [1] - The report predicts that the long bull market for Hong Kong stocks since early 2024 will continue, driven by liquidity spillover effects and sustained AI narratives [1] Group 4: Investment Recommendations - Investors are advised to focus on four long-term directions: 1. Technology sector, including AI-related sub-sectors and consumer electronics [1] 2. Healthcare sector, particularly biotechnology [1] 3. Non-ferrous metals benefiting from rising overseas inflation expectations and de-dollarization [1] 4. Consumer sector, which may see valuation recovery amid further domestic economic recovery [1]