Core Viewpoint - The Hong Kong stock market's technology and internet sector is experiencing an increase in allocation value driven by multiple favorable factors, including macroeconomic growth, international relations improvements, and positive capital flow signals [1] Macroeconomic Factors - The GDP growth for the first three quarters is 5.2% year-on-year, indicating positive outcomes in high-quality development and creating a favorable market environment [1] - Progress in Sino-U.S. economic and trade dialogues has been made, with both sides agreeing to hold new rounds of consultations, which may help ease trade tensions [1] Capital Flow Signals - Southbound capital shows a "buy on dips" characteristic, with a net inflow of 450.89 billion HKD during the recent market correction, marking the highest level in nearly five weeks [1] - The cumulative net inflow for the year has exceeded 1.1 trillion HKD, reflecting strong enthusiasm for allocation in Hong Kong stocks [1] Institutional Outlook - Institutions are optimistic about the long-term performance of the Hong Kong technology and internet sector. Cathay Pacific Securities believes that short-term disturbances will not alter the mid-term trend, and the bull market in Hong Kong stocks is expected to continue in the fourth quarter due to an upward industry cycle and new capital entering the market [1] - Guoyuan International anticipates that the Hong Kong stock market will maintain resilience, with short-term volatility providing better entry opportunities [1] - Huafu Securities recommends focusing on Hong Kong technology stocks that concentrate on AI core assets to seize structural opportunities [1] Relevant ETFs - Hong Kong Stock Connect Technology ETF (159101) covers the entire technology industry chain [1] - Hang Seng Internet ETF (513330) focuses on leading internet companies [1]

Core Viewpoint - The Hong Kong stock market has shown strong performance in 2023, with the Hang Seng Index up 9.22% and the Hang Seng Tech Index up 11.36%, contrasting with a 3.83% decline in the CSI 300 Index [1] Group 1: Fund Performance - The Changcheng Hong Kong Stock Connect Value Selection Fund, managed by Qu Shaojie, reported impressive returns, with the A class achieving 33.63% and 57.88% over the past six months and one year, respectively, significantly outperforming the benchmark [1] - The fund's performance is attributed to two main factors: the recovery of the domestic economy supported by favorable policies and a focus on technology internet and emerging consumption sectors in the Hong Kong market [1][2] Group 2: Economic Outlook - Qu Shaojie expressed optimism for the Hong Kong stock market's medium to long-term performance, citing improved economic fundamentals and favorable capital conditions [2] - The investment logic for technology internet and emerging consumption sectors remains strong, with government policies likely to stimulate consumption and high-tech innovation [2] Group 3: Emerging Consumption Trends - The rapid growth of the "subculture" demographic and the rise of domestic intellectual property (IP) are driving new consumption sectors, with young consumers showing significant potential [2] - Investment in emerging consumption should focus on companies' IP creation and operational capabilities, as well as their growth rates and management quality [2] Group 4: Fund Historical Performance - The Changcheng Hong Kong Stock Connect Value Selection Fund A class has shown varied performance since its inception in June 2019, with annual returns ranging from -31.87% in 2022 to 36.47% in 2020 [3] - The C class, established in January 2023, reported a return of -16.72% for the period from its inception to the end of 2023, with a subsequent recovery of 16.49% in 2024 [3]