Ping An Securities Hongkong·2025-10-16 02:22Market Overview - The Hong Kong stock market experienced fluctuations, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61% [1] - The market saw a significant rebound on Wednesday, with the Hang Seng Index rising 1.84% to 25,910.6 points, ending a seven-day decline [1] - The technology sector showed strong performance, with notable gains from JD Health and Huahong Semiconductor, both rising over 5% [1][3] US Market Insights - Bank of America reported strong earnings, boosting investor sentiment, leading to a 0.4% increase in the S&P 500 and a 0.7% rise in the Nasdaq Composite [2] - Ongoing US-China trade negotiations and government shutdown risks kept the market cautious, with the Dow Jones Industrial Average closing down 17 points at 46,253 points [2] - The VIX index, a measure of market volatility, rose to 20.6 points, nearing its highest level since late May [2] Investment Opportunities - The report emphasizes the potential for Hong Kong stocks to rebound due to low valuations and increasing trading activity [3] - Key sectors to watch include artificial intelligence, semiconductors, and industrial software, which are expected to drive long-term growth [3] - Central state-owned enterprises with low valuations and high dividends are highlighted as attractive investment options [3] - The upstream non-ferrous metals sector is expected to benefit from anticipated interest rate cuts by the Federal Reserve [3] Company Highlights - China Unicom (0762HK) is noted for its strong performance in digital technology, with a projected revenue of 45.4 billion yuan for its smart network business, reflecting a 4.3% year-on-year growth [10] - The company has a consistent dividend yield of over 6% and is positioned well within the digital economy landscape [10] - ZTE Corporation (00763HK) is expanding its focus on intelligent computing and 5G technology, maintaining a strong market position in both connectivity and computing solutions [9]