Business Strategy: Improved liquidity supports the Hong Kong stock market rebound, focusing on opportunities in innovative drugs and the internet sector.

The commercial strategy states that, after the rapid rise and gradual stabilization of Hibor rates, and Powell's significant shift to a dovish stance, changes in both internal and external liquidity point to one conclusion: the narrative of tightening liquidity in Hong Kong stocks has marginally improved. The improvement in the liquidity narrative is sufficient to support a temporary rebound in Hong Kong stocks, narrowing the gap with the recent rapid rise in A-shares. In terms of performance, the current earnings surprise rate for Hong Kong stocks is at a new high since 2022. However, in the previous bull markets, Hong Kong stock indices slightly lagged behind A-shares, so in this round of allocation, it is recommended to focus on directions that differ from A-shares, with a suggestion to prioritize innovative drugs, followed by internet stocks, and lastly new consumption.