Core Viewpoint - The Hong Kong stock market, particularly the Hang Seng Technology Index, has experienced a significant correction of 16% from 6715 points to 5395 points since October, influenced by multiple internal and external factors [1][2]. External Factors - The Federal Reserve's hawkish stance during the October FOMC meeting has led to a substantial adjustment in market expectations for a rate cut in December [2]. - The U.S. Treasury's debt issuance has reduced excess liquidity in the banking system, widening the spread between overnight financing rates and the Fed's reserve rates, contributing to tighter dollar liquidity and a stronger dollar, which negatively impacts the Hong Kong stock market [2]. Internal Factors - Prior to the correction, some growth stocks had reached high valuations due to favorable conditions, but the lack of unexpected policy stimulus has led to a "narrative vacuum," making the market more susceptible to external negative shocks [2]. - Compared to A-shares, Hong Kong tech stocks are more focused on sectors like semiconductors, new energy, and AI, with their valuations being supported by performance verification. In contrast, Hong Kong's internet giants are transitioning from a consumption-based valuation to a technology-based one, indicating a gradual pricing process for their AI application assets [2]. Market Behavior - Interestingly, despite the market downturn, the shares of Hong Kong-related ETFs have increased, indicating a "buy the dip" mentality among investors. As of November 21, the top 10 ETFs with the most significant share growth since October included six Hong Kong-related ETFs, with a total increase of 776 million shares [3]. - Recent comments from Federal Reserve officials have renewed expectations for a December rate cut, and a notable performance from a Hong Kong tech leader's AI application has catalyzed a rebound in tech stocks [3]. Investment Opportunities - After the correction, the Hong Kong market shows signs of value for allocation, but the rebound dynamics and driving logic vary across different sectors. For ordinary investors, navigating this market requires in-depth research on various sectors and understanding complex internal and external factors [3]. - Engaging with experienced active funds may provide a more convenient way for individual investors to participate in the Hong Kong market, allowing professionals to manage the complexities [3]. Fund Performance - As of October 31, several funds managed by the company rank highly in their categories, including the Fu Guo Blue Chip Select Fund and the Fu Guo China Small Cap Mixed Fund, which have achieved top rankings in their respective categories over one and five years [4][5].