EB SECURITIES International: Nasdaq Still Has Not Bottomed in the Short Term; Bullish on Leading Chinese Tech Stocks

EB SECURITIES International: Nasdaq Still Has Not Bottomed in the Short Term; Bullish on Leading Chinese Tech Stocks US stocks encountered strong selling pressure, with the S&P 500 Index and the Nasdaq Index falling more than 4% and 5% respectively in a single day last Thursday (the 5th). Tang Lihong, Global Market and FX Strategist at EB SECURITIES International, said the Nasdaq may still not have bottomed in the short term, and investors need not rush to buy the dip. Tang Lihong noted that the Nasdaq has historically experienced multiple corrections of more than 10%, and it often takes about 3 months before a more obvious rebound emerges. The global AI sector has already risen for more than 2 years, and this wave clearly involves a "valuation de-rating." She expects that, against the backdrop of anticipated obstacles to US President Trump's AI policy over the next 2 years, the adjustment momentum in AI stocks will continue over the next 2 weeks, and the Nasdaq has still not shown initial signs of bottoming. Combined with a relatively high probability that the Federal Reserve will raise rates in December, investors should not rush to buy on dips at present. However, Tang Lihong is also bullish on the outlook for Chinese tech stocks, but only leading tech stocks. She believes that whenever US AI stocks weaken, capital often flows into the Hong Kong stock market, and the Hang Seng Index's gains last week also reflected this countercyclical state. She expects that tighter controls on capital outflows in the mainland will benefit A-share and H-share market performance. Mainland policy already encourages companies to buy back shares, and if more favorable policies are introduced, this is expected to support overall market performance. She added that, since US, Japanese, and South Korean stocks are expected to continue adjusting in the short term, Hong Kong stocks are expected to be relatively resilient. She recommends paying attention to leading tech stocks such as Alibaba (09988), JD.com (09618), and Xiaomi (01810).