Group 1: US-China Relations - The meeting between the US and Chinese leaders on October 30, 2025, in Busan focused on enhancing economic cooperation and addressing trade issues [2] - Both sides agreed to expedite the implementation of previously reached consensus and maintain effective communication to reduce uncertainties in bilateral relations [2][3] Group 2: Trade Agreements - The US will cancel the 10% "fentanyl tariff" on Chinese goods, and the 24% reciprocal tariffs will remain suspended for another year, with corresponding adjustments from China [3] - The US will pause the implementation of its 50% export control rules for a year, while China will also suspend its related measures for the same duration [3] - Both parties agreed to extend certain tariff exclusions and confirmed cooperation on fentanyl control and agricultural trade [3] Group 3: US Stock Market Outlook - The core driver of the recent rise in the US stock market has returned to corporate fundamentals, with significant gains in the S&P 500 and Nasdaq indices since October 10, 2025 [4] - The earnings growth expectations for major tech companies have been revised upwards, contributing to the positive market sentiment [4] - The successful meeting between the US and Chinese leaders is expected to further alleviate geopolitical risks, enhancing the investment appeal of the US stock market, particularly in the tech sector [4] Group 4: Hong Kong Stock Market Outlook - The Hong Kong stock market is expected to see an upward shift in risk appetite, with a focus on raw materials, sectors benefiting from exports to the US, and industries that may gain from RMB appreciation [5][6] - The recent negotiations have led to a recovery in the Hong Kong market, which had previously suffered from concerns over export controls and potential tariffs [5][6] - Historical trends suggest that a stabilization in US-China relations could lead to a rebound in the RMB, positively impacting sectors like aviation and paper manufacturing [6]

Core Viewpoint - The current rise in the US stock market is primarily driven by corporate fundamentals, with improved US-China relations expected to significantly reduce potential disruptions from additional risk factors [1] Group 1: US Stock Market - The US stock market still possesses significant allocation value under the backdrop of relatively eased US-China relations and overall ample liquidity in the US [1] - Recommended sectors for investment in the US market include technology, manufacturing benefiting from re-industrialization and policy support, midstream and upstream resource products, and the nuclear power industry [1] Group 2: Hong Kong Stock Market - The risk appetite in the Hong Kong stock market may increase, with a focus on raw materials, sectors benefiting from exports to the US, and industries that may gain from the appreciation of the Renminbi, such as aviation and paper manufacturing [1]

Core Viewpoint - The current rise in the US stock market is primarily driven by corporate fundamentals, with a potential reduction in risk factors due to the easing of US-China relations [1] Group 1: US Stock Market - The easing of US-China relations is expected to significantly lower potential disturbances from additional risk factors [1] - The overall liquidity in the US remains relatively abundant, indicating that the US stock market still holds significant allocation value [1] - Recommended sectors for investment include technology, manufacturing benefiting from re-industrialization and policy support, midstream and upstream resource products, and the nuclear power industry [1] Group 2: Hong Kong Stock Market - The risk appetite in the Hong Kong stock market may increase, with a focus on raw materials and sectors benefiting from exports to the US [1] - Sectors that may benefit from the appreciation of the Renminbi include aviation and paper manufacturing [1]