Domestic Economic Overview - In September, industrial enterprise profits showed a slight recovery, with a year-on-year increase of 21.6%, up from 20.4% in the previous month. The year-to-date profit growth for January to September was reported at 3.2%, compared to 0.9% previously [14] - The manufacturing PMI for October decreased to 49%, down from 49.8% in September, indicating continued contraction. The non-manufacturing PMI rose slightly to 50.1% from 50% [8][9] - The supply side showed marginal declines, with new orders and production indices both down. The upstream price index has also declined for two consecutive months [8][9] International Economic Context - The Federal Open Market Committee (FOMC) lowered interest rates by 25 basis points in October, bringing the benchmark rate to a range of 3.75%-4.00%. This marks the second consecutive rate cut [33][34] - The geopolitical landscape remains tense, with ongoing conflicts in Ukraine and the Middle East impacting global economic conditions. A joint statement from Western nations emphasized support for Ukraine and a call for immediate ceasefire [28][30] Industry Allocation Recommendations - Investment strategies are focused on three main directions: 1) Breakthroughs in technology AI led by Deepseek, 2) Economic recovery with a "stronger stronger" market style, and 3) Continued rise of undervalued dividends [38] - The report emphasizes the importance of the Hang Seng Internet sector, suggesting that the performance of undervalued dividends is closely tied to advancements in the AI industry [38]