China-Thailand International: The valuation of Hong Kong stocks is at a relatively low level. Focus on growth stocks and high dividend defensive stocks.

Chinese-Thai international strategic analyst Yan Zhaojun believes that the U.S. election will cause market volatility, and the tense election situation will continue to affect capital market preferences. However, with the current extremely low valuation of Hong Kong stocks, a rebound is expected, and the liquidity easing brought about by the Fed's interest rate cuts will also help. In addition to defensive high-dividend stocks, growth stocks can also be absorbed. Yan Zhaojun pointed out that historically, after the Fed cuts interest rates, the overall performance of Hong Kong stocks in one month, three months, and six months is relatively mixed. However, rate cuts are actually favorable for all non-U.S. markets, but whether Hong Kong stocks can continue to rise ultimately depends on China's fundamentals. Furthermore, the U.S. economy remains robust, and the extent of rate cuts in the early stages will tend to be conservative, limiting the release of liquidity pressure on Hong Kong stocks. Yan Zhaojun also stated that with the continuous decline in Chinese government bond yields and the background of "asset shortage," it is difficult for policies to have strong short-term stimulus, and funds will continue to absorb high-dividend defensive stocks. It is still necessary to maintain a barbell strategy, focusing on growth stocks and high-dividend defensive stocks. For example, the profit forecast of the Hang Seng Tech Index is constantly being revised upwards, but the forecast price-to-earnings ratio (PE) is at historical lows, making the technology sector attractive. Regarding the U.S. election, Yan Zhaojun believes that the policy platforms of both candidates may further increase the upward risk of U.S. fiscal spending, leading to persistent high interest rates and limited effectiveness in alleviating liquidity pressure on Hong Kong stocks. However, Harris is more moderate than Trump on issues such as imposing tariffs and immigration, which may help reduce global trade frictions and the possibility of significant inflation, which may be relatively beneficial for Chinese assets.