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].

Core Viewpoint - The A-share market has outperformed the Hong Kong stock market since July, but recent days have seen a broad rally in Hong Kong stocks, with some individual stocks reaching new highs for the year [3][4]. Group 1: Market Performance - Since July, A-shares have consistently outperformed Hong Kong stocks, which have shown high-level fluctuations [3]. - Recent trading days have seen a resurgence in Hong Kong stocks, with broad gains and some stocks hitting annual highs [3]. Group 2: Fund Flows - Despite the underperformance of Hong Kong stocks, capital flows have remained strong, with southbound funds net buying Hong Kong stocks for eight consecutive trading days, totaling over 1 trillion HKD for the year [4]. - From July onwards, A-share broad-based ETFs have seen a net outflow of 203.8 billion CNY, while industry and thematic ETFs have seen a net inflow of 114.2 billion CNY, and Hong Kong-related ETFs have attracted 143.1 billion CNY [4]. Group 3: Investment Strategies - The shift in capital flows indicates a trend of institutional investors reducing their A-share ETF holdings while increasing their positions in Hong Kong ETFs, reflecting a "reduce A, increase Hong Kong" strategy [4]. - The Hong Kong Internet ETF has seen significant growth, with its shares increasing from 317.34 billion to 830.02 billion since the beginning of the year, a rise of 512.68 billion [4][5]. Group 4: Economic Influences - A key driver for the increased investment in Hong Kong stocks is the shift in U.S. Federal Reserve monetary policy, with expectations of interest rate cuts following signals from the Jackson Hole meeting and disappointing non-farm payroll data [6]. - This shift is expected to enhance liquidity in the Hong Kong market and improve the valuation levels of quality assets in sectors like technology and pharmaceuticals [6]. Group 5: Fund Performance - The 富国蓝筹精选股票 (QDII) fund has focused on Hong Kong and U.S. stocks, maintaining a low A-share allocation, and has adopted a barbell strategy of quality growth stocks and high-dividend stocks [10]. - The fund has seen a significant increase in its growth stock allocation since last year, particularly in sectors like innovative pharmaceuticals and new consumption [10].