Core Viewpoint - The article discusses the current state of the Hong Kong stock market, emphasizing a cautious approach to investment strategies amid ongoing market fluctuations and the need for a balanced asset allocation strategy. Group 1: Market Overview - Global major stock markets have recovered from the largest declines since April, with the Hong Kong stock market showing significant gains [1] - The southbound flow of the Hong Kong Stock Connect has been cautious since mid-April, indicating a defensive stance among investors [3] Group 2: Investment Strategy - A "defensive counterattack" strategy is suggested for investing in Hong Kong stocks, combining offensive and defensive asset allocations [3] - The strategy involves selecting assets with extreme attributes to hedge against uncertainties and balance risk and return [5] - Offensive assets should include sectors with high growth potential, such as AI and semiconductors, or leading companies with monopolistic advantages [3] - Defensive assets should consist of stable, high cash flow companies, such as utility leaders or sectors supported by government policies like new energy and infrastructure [3] Group 3: Asset Allocation Examples - An example of asset allocation is provided, suggesting a 50/50 split between defensive and offensive assets [4] - The Hong Kong Dividend Low Volatility ETF (SH520550) is highlighted for its high dividend yield of 8.2% and frequent dividend payments [4] - The Hong Kong Technology 50 ETF (SZ159750) is noted for its 27% year-to-date return and coverage of key sectors like innovative pharmaceuticals and AI [4] Group 4: Dynamic Adjustment - Regular adjustments to the asset allocation are recommended to maximize returns, such as selling portions of the technology ETF when it exceeds expectations [7] - The essence of the strategy is to survive with defensive assets while thriving with offensive assets, allowing for simple operations without frequent trading [7] - Both ETFs mentioned are T+0 trading, facilitating easy adjustments to the strategy [7]