Huatai Securities Hong Kong Stock Strategy: Positioning for Cash Flow Certainty and Industry Certainty.

Huatai Securities research report stated that the sentiment in the Hong Kong stock market has recovered to a neutral level, expectations for loose overseas liquidity have partially retreated, and with the approaching holiday season, Huatai Securities believes that at the current stage, the upside potential for Hong Kong stocks is constrained, and the key is to focus on the structure. It is recommended to continue allocating based on the certainty of cash flow and industry. The former corresponds to continuing to hold cyclical products with stable cash flows and low capital expenditure pressure, such as coal, aluminum, and some low-dividend, low-volatility stocks, such as some Hong Kong local stocks and state-owned banks. The latter corresponds to the AI chain that is still in an upward trend, anchored by US stock performance, with a focus on semiconductors. Investors with a high risk appetite can moderately position themselves in cloud computing and large-cap technology companies.