Report Industry Investment Rating - No relevant information provided Core Viewpoints of the Report - The Hong Kong stock market may experience short - term fluctuations due to external disturbances. The Iran conflict may lead to long - term military confrontation, causing energy prices to remain high, deepening concerns about inflation rebound, and forcing the Fed to tighten monetary policy. This may keep the risk - aversion sentiment in the Hong Kong stock market high. However, the long - term allocation value of the Hong Kong stock market is still significant due to the support of southbound funds and the relatively loose interest rate environment [3][8][9] Summary According to Relevant Catalogs 1. Investment Views 1.1 Market Summary - Last week, the Hang Seng Index fluctuated slightly, with a cumulative decline of 0.74% and the technology index falling 2.12%. The market style was cautious. The comprehensive, financial, and energy sectors rose, with increases of less than 2.5%, while most other industries declined, with the raw materials sector dropping 11.26%. Among the secondary industry sectors, electrical equipment rose 8.7%, and most secondary sectors fell, with non - ferrous metals dropping 20.9%. In terms of funds, the share of the Tracker Fund increased by 0.62%, and the shares of the double - short ETFs of the Hang Seng Index and Hang Seng Technology Index increased by 4.22% and decreased by 1.28% respectively. The net inflow of Hong Kong Stock Connect was - HK$6.329 billion, and southbound funds showed a net outflow. Overall, the risk - aversion sentiment in the Hong Kong stock market increased, the risk preference remained low, and the capital side weakened [1][6] 1.2 Market Environment - Last week, the global market sentiment was affected by the Iran conflict. The crude oil price rose 5.2% in a week, showing a continuous upward trend. The prices of major non - ferrous metals continued to fall, with silver dropping 16.6% and gold dropping 11.3%. The global capital market weakened across the board, and the US dollar index fell slightly by 1%. The global market may still be pricing in the expectation of the Fed's monetary policy tightening caused by the rising oil price. The Fed maintained the current interest rate level. The meeting's tone was neutral to hawkish, and the dot - plot showed only one interest rate cut in 2026 - 2027 [2][7] 1.3 Hong Kong Stock Views - The Hong Kong stock market may experience short - term fluctuations due to external disturbances. The Iran conflict may be long - term, causing energy prices to remain high, deepening concerns about inflation rebound. The Fed may tighten monetary policy due to rising energy prices, which may keep the risk - aversion sentiment in the Hong Kong stock market high. Investors may prefer energy and financial sectors, and downstream consumption and technology sectors may further correct, but they will have greater valuation flexibility after sentiment repair points. The capital fundamentals of the Hong Kong stock market are still good, and the long - term allocation value is significant [3][8][9] 2. Market Review 2.1 Stock Index Futures Performance - The table shows the closing prices, weekly price changes, trading volumes, open interests, open interest change rates, basis, and basis changes compared with the previous week of various stock index futures last week, including the Hang Seng Index futures, H - share Index futures, Hang Seng Technology Index futures, and some US index futures [12] 2.2 Market Performance - The table shows the closing prices, weekly price changes, year - to - date price changes, weekly trading volumes, and price - to - earnings ratios of major Hong Kong and US stock indexes last week. Another table shows the closing prices, market values, weekly price changes, monthly price changes, year - to - date price changes, year - to - date price changes relative to the Hang Seng Index, and price - to - earnings ratios of various Hong Kong industry sectors. The third table shows the top five and bottom five sectors in terms of price changes among the Hong Kong WIND secondary sectors. The fourth table shows the information of actively traded Hong Kong ETFs, including closing prices, weekly price changes, year - to - date price changes relative to the Hang Seng Index, returns in the past six months, fund shares, changes in fund shares compared with the previous week, weekly trading volumes, net asset values per share, fund sizes, and changes in net asset values. The fifth table shows the price changes of various US industry sectors, and the sixth table shows the price changes of various US ETFs. The last table shows the performance of major asset classes, including closing prices, weekly price changes, monthly price changes, year - to - date price changes, price changes in the past one month, three months, six months, and one year [14][15][16][24][25][26] 3. Market External Environment Tracking 3.1 Domestic Macroeconomic Data Update - The table shows some major domestic macroeconomic data, including GDP, PMI, industrial added value, investment, consumption, foreign trade, inflation, social financing scale, and real estate - related data [28] 3.2 Central Bank's Latest Movements - The Fed maintained the federal funds rate target range at 3.50% - 3.75%, with a 11 - 1 vote. One member opposed and advocated a 25 - basis - point rate cut. The Fed raised inflation and economic growth expectations, and the dot - plot showed only one interest rate cut in 2026 - 2027 [30] 3.3 Some Important Domestic and International News - The Fed's vice - chair and a governor expressed their views on interest rate cuts. European and some Asian central banks maintained interest rates. China's national statistics showed economic data for January - February, including investment, industrial added value, consumption, and fiscal revenue and expenditure. The decline in China's actual use of foreign capital narrowed, and the housing price decline in 70 cities continued to narrow. The Iran conflict severely impacted global energy supply [33] 3.5 This Week's Focus - The Bank of Japan will release the minutes of its January monetary policy meeting [34]