HAITONG INT'L: If the Hang Seng Index falls below 22,500, it will be a good opportunity to add positions. We recommend keeping the main positions.

Haitong International released a research report stating that the market is still in a phase of consolidation, and investors can take advantage of the pullback to increase their holdings in the technology sector and increase their allocation in A shares. The report pointed out that short selling in Hong Kong stocks accounted for 15% of the trading volume; the AH premium has decreased to 138, approaching the 10-year average of 137 again; southbound funds inflows slowed to 35.6 billion this week, with southbound fund transactions accounting for a slight decrease to 21%; this week, southbound funds bought BABA-W (09988) decreased to 6.5 billion Hong Kong dollars, bought TENCENT (00700) decreased to 2.3 billion Hong Kong dollars, and bought Semiconductor Manufacturing International Corporation (00981) decreased to 1.1 billion Hong Kong dollars. The report believes that after experiencing bottoming out and rebounding this week, both Hong Kong stocks and A shares still need about a week of consolidation to solidify chips, and the market will once again break through after the end of the two sessions. The report maintains the view from last week, advising investors to retain their main positions and gradually increase their allocation in technology during pullbacks, especially in A shares; opportunities to increase positions will be even better if Hong Kong stocks fall below 22,500 points and the Shanghai Composite Index falls below 3,300 points. In terms of industries, it is expected that there will continue to be rotation in oversold industries with policy expectations next week, and the market will refocus on technology, especially in directions where first-quarter earnings have already been reported.