Mei Ri Jing Ji Xin Wen·2025-10-20 02:27Core Viewpoint - The Hong Kong stock market is experiencing a collective rise, driven by technology stocks and positive sentiment, with expectations for a rebound in both A-shares and Hong Kong stocks in the near term [1][2]. Group 1: Market Performance - On October 20, Hong Kong's three major indices opened higher, with technology stocks and innovative drug concepts leading the gains [1]. - The Hang Seng Technology Index ETF (513180) saw a strong upward movement, with major holdings like Alibaba and NIO showing significant increases, particularly Alibaba rising over 4% [1]. - The overall market is expected to continue a volatile yet upward trend, with the technology sector still in a correction phase [1]. Group 2: Analyst Insights - Haitong International suggests that the recent adjustments in the market have created a configuration value, indicating potential for recovery [1]. - Guotai Junan believes that the bullish trend for Hong Kong stocks in Q4 remains intact, with current adjustments showing significant declines compared to historical norms [1]. - The firm highlights that positive factors such as progress in US-China negotiations and domestic policy support could mitigate further market declines [1]. Group 3: Valuation and Future Outlook - As of October 17, the latest valuation of the Hang Seng Technology Index ETF (513180) stands at 22.13 times, which is below 75% of its historical valuation since inception [2]. - The technology sector is expected to benefit from current trends in AI, with potential foreign capital inflows anticipated due to a favorable interest rate environment [2]. - Investors without access to the Hong Kong Stock Connect can consider the Hang Seng Technology Index ETF (513180) for exposure to core Chinese AI assets [2].