CMSC International: Hong Kong stocks may maintain fluctuating movements; it is recommended to combine high dividend and quality technology stock strategies.

CMSC International has released a research report stating that the Hong Kong stock market may still lack sustained upward momentum in the short term due to the limited breadth of domestic economic recovery. It is difficult to raise corporate earnings expectations comprehensively, and expectations of overseas interest rate hikes and high long-term rates continue to constrain valuation expansion. Therefore, market opportunities are expected to arise more from sector rotation and individual stock earnings improvements, with the index level likely to remain volatile. The report emphasizes that next week, the focus will be on Chinas August trade data and the U.S. August CPI, with the former reflecting the support of external demand for economic growth and the latter serving as an important basis for judging the Federal Reserve's policy direction in September. In terms of asset allocation, the report recommends a strategy that combines high dividends with quality technology stocks. Telecommunications, utilities, energy, and state-owned enterprises with stable cash flows can continue to serve as a base. In the tech sector, it is advisable to prioritize internet platforms, cloud services, and AI application companies with robust core businesses and high earnings visibility that have gradually manifested the commercialization effects of AI. For targets with high capital expenditures, a continued reliance on external financing, and earnings yet to be realized, position sizes should still be controlled.