Huatai Securities: There may still be a lot of catalysts for technology and consumer sectors in the Hong Kong stock market before and after the Spring Festival. We recommend maintaining a balanced allocation and holding stocks over the holiday.

Huatai Securities research report stated that last week, Hong Kong stocks fluctuated along with global risk assets. The global software industry saw a correction, controversy arose over entry subsidies for Hong Kong tech giants, the US dollar rebounded, and the aftermath of the commodity market continued to affect market volatility both during the day and intraday. However, liquidity remained relatively abundant, with foreign capital and Southbound capital continuing to flow into the Hong Kong stock market, driving traditional sectors such as agriculture, forestry, animal husbandry, fisheries, food and beverage, and transportation. Looking ahead, the peak of performance for US tech stocks is coming to an end, volatility in precious metals is expected to decrease, and there may still be many opportunities for technology and consumer themes before and after the Spring Festival. It is recommended to maintain a balanced allocation, hold stocks during the holidays, and focus on semiconductors, consumer trends with low base that continue to improve, real estate chains and innovative drugs after the concentration of negative factors has been priced in. The mid-term allocation view remains unchanged, and after stabilization, it is recommended to continue to allocate resources to commodities, be overweight in insurance, and focus on Hong Kong-listed local stocks.