Market Overview - The Hong Kong stock market experienced fluctuations, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61% [1] - The market saw a significant increase on Wednesday, with the Hang Seng Index rising 1.78% to 26,908.39 points, and the Hang Seng Technology Index up 4.22% to 6,334.24 points, both reaching new highs [1][5] - The total market turnover decreased to 827.99 billion, with net inflows of 4.84 billion in the Hong Kong Stock Connect [1][5] U.S. Market Insights - The Federal Reserve announced a quarter-point rate cut, bringing the overnight rate to 4% to 4.25%, indicating a risk management approach rather than the start of a long-term easing cycle [2] - The Dow Jones reached a new high, closing up 0.6% at 46,018 points, while the S&P 500 dipped 0.1% and the Nasdaq fell 0.3% [2] Sector Performance - The technology sector in Hong Kong saw a strong performance, with Baidu Group surging over 15% and Alibaba rising more than 5% [1][3] - The semiconductor and lithium battery sectors also performed well, with companies like SMIC and CATL reaching historical highs [1][3] Investment Recommendations - The report suggests focusing on sectors such as artificial intelligence, semiconductors, and industrial software, which are seen as new productivity drivers [3] - It also highlights the upstream non-ferrous metals sector, which is expected to benefit from the Fed's rate cut and strong mid-year performance [3] - Companies with low valuations and high dividends in various sub-sectors, particularly state-owned enterprises, are recommended for continued attention [3] Key Company Highlights - Baidu's self-developed Kunlun chip business is viewed as a potential growth engine, leading to a significant stock price increase [3] - The report emphasizes the importance of domestic semiconductor companies, particularly in light of recent regulatory actions against Nvidia [9] - The real estate market shows signs of recovery, with new policies expected to boost demand, particularly for leading property companies [9]