Core Insights - The GUM MPF Composite Index rose by 0.3% in October, reaching 284.9 points, with an average gain of HKD 830 per person for the month and HKD 44,197 year-to-date [1][1][1] Market Performance - Market fluctuations in early October were triggered by the stalemate between the US and China over rare earths and tariffs, leading to a temporary decline in stock prices [1] - A shift in sentiment occurred after former President Trump adopted a more conciliatory tone on social media, alleviating market fears and allowing stock markets to stabilize [1] - The US and China have paused the escalation of their rare earth and tariff disputes, contributing to improved market conditions [1] Asset Allocation - The outlook for stock funds in mainland China, Hong Kong, and Japan remains optimistic, driven by a pragmatic approach in US-China trade negotiations aimed at finding solutions and reducing concerns over conflict escalation [1] - Expectations are that the Bank of Japan will maintain an accommodative monetary policy under the new Prime Minister Fumio Kishida, alongside aggressive fiscal expansion, which is believed to support asset prices [1]