Core Viewpoint - The article highlights a decline in U.S. stocks and Chinese concept stocks, with expectations for Hong Kong stocks to face liquidity pressure due to a weaker U.S. dollar trend and external market sentiment [1] Market Performance - U.S. stocks fell overnight, with the Chinese concept index down by 0.94% - Hong Kong's three major indices opened lower, with the Hang Seng Index down 0.14%, the Hang Seng China Enterprises Index down 0.15%, and the Hang Seng Tech Index down 0.87% - Major tech stocks and AI application concept stocks collectively declined, while gold stocks led a rebound in the non-ferrous metal sector [1] ETF Performance - Popular ETFs showed slight declines, with the Hang Seng ETF (159920) and Hang Seng China Enterprises ETF (159850) experiencing minor drops - The Hang Seng Tech Index ETF (513180) opened lower and fluctuated downwards, currently down nearly 2% [1] Future Outlook - By 2026, a dual expansion of U.S. monetary and fiscal policy is expected, reducing the likelihood of a weak dollar trend seen in the first half of 2025, which may suppress overall liquidity for Hong Kong stocks - The upward momentum for Hong Kong stocks may rely on breakthroughs in AI and related technologies to drive expected economic growth [1] Risk Factors - Hong Kong stocks, as an offshore market, are susceptible to rapid declines due to external liquidity and sentiment fluctuations, especially during periods of declining global risk appetite - However, as liquidity eases and risk preferences recover, sectors may experience a rebound [1] Fundamental Analysis - Hong Kong stocks are currently at relatively low historical valuations, enhancing their attractiveness for investment after recent corrections - Continued commercialization of AI and potential recovery in domestic consumption are expected to support long-term growth momentum for the sector, with no substantial deterioration in fundamentals observed [1] Notable Investment Targets - Core broad-based Hong Kong stocks: Hang Seng ETF (159920) - AI and platform economy: Hang Seng Tech Index ETF (513180) - Core consumer assets in Hong Kong: China Consumption ETF (513230) - Global pharmaceutical industry representation: Hang Seng Pharmaceutical ETF (159892) - Chinese AI technology concept companies: Hang Seng Internet ETF (513330) [2]

Group 1 - The overall Hong Kong stock market experienced a pullback ahead of the Federal Reserve's interest rate decision, with the Hang Seng Technology Index down 1.32% and the Hang Seng Index down 0.84% [1] - The power sector showed gains, while passenger airlines, hotels, and resort REITs faced significant declines [1] - Popular ETFs such as the Hang Seng ETF (159920) and the Hang Seng China Enterprises ETF (159850) continued to drop, each falling around 1.5%, indicating a potential low-point buying opportunity [1] Group 2 - The U.S. September Core PCE Price Index met expectations, with a month-on-month increase of 0.2%, year-on-year increase of 2.8%, and a previous value of 2.9% [1] - According to Jianyin International, while the valuation repair of Hong Kong stocks is largely complete, the investment logic has shifted from traditional valuation repair to a revaluation based on new productive forces and high-quality development, with moderate expansion or improvement in valuation and earnings expected by 2026 [1] Group 3 - Notable investment targets include the core broad-based Hong Kong stock: Hang Seng ETF (159920), AI and platform economy: Hang Seng Technology Index ETF (513180), and focus on the development of Chinese enterprises in Hong Kong: Hang Seng China Enterprises ETF (159850) [2]