EB SECURITIES: A-share expected to continue to rise after the holiday, Hong Kong stocks focus on the "dumbbell" strategy of technology growth and high dividend stocks.

EB Securities recently released a research report on the outlook for A-share market, stating that A-shares are expected to continue to rise after the festival, with a focus on the TMT sector. In terms of allocation, the institution recommends focusing on the TMT sector. In terms of Hong Kong stocks, they suggest focusing on a "dumbbell" type allocation strategy, with a preference for technology growth and high dividend yield "dumbbell" strategy as the Federal Reserve's rate cut cycle begins. The main points of EB Securities are as follows: - A-share and Hong Kong stock markets continued to rise in September. Most major indices in A-share rose more than fell in September, with clear differentiation at the industry level. Overall, the market sentiment has improved and industry trends have been catalyzed, resulting in most A-share indices rising in September, with the ChiNext Index seeing the largest increase, while the SSE 50 Index saw the largest decrease. Various industries saw significant differences in growth rates, with sectors like electrical equipment, electronics, and media performing well. - The Hong Kong stock market experienced a volatile uptrend in September. The overall trend of the Hong Kong stock market was positively affected by overseas rate cuts and domestic risk preferences, resulting in an overall uptrend. As of September 25, 2025, the Hang Seng Tech Index, Hang Seng Composite Index, Hang Seng Index, Hang Seng H-Share Index ETF, and Hang Seng Hong Kong 35 Index rose by 12.4%, 6.2%, 5.6%, 5.5%, and 0.7% respectively. - A-share viewpoint: The market is expected to continue to rise after the festival. Historically, market performance tends to be positive after the National Day holidays. The logic supporting the stock market's rise remains unchanged, with market valuations currently reasonable and no signs of overextension. It is expected that the market will likely return to an upward trajectory after the festival. In terms of allocation, the focus should be on the TMT sector, which is likely to lead the market due to liquidity-driven trends. - Hong Kong stock viewpoint: Focus on a "dumbbell" type allocation as the Federal Reserve's rate cut cycle begins. The Hong Kong stock market may continue its volatile uptrend in the future, with strong overall profitability and relatively low valuations. The AI industry trend development and the Federal Reserve's rate cut cycle opening may contribute to an upward movement in the Hong Kong stock market. - Consider a "dumbbell" strategy focused on technology growth and high dividend yield advantages. 1) Focus on concepts related to domestic support policies under the backdrop of the US-China competition, such as independent controllable, chip, and high-end manufacturing. 2) Focus on internet technology companies with strong independent business cycles. 3) Continue to focus on high dividend, low volatility strategies, including industries like communications, utilities, and banking. The high dividend strategy can still provide stable returns. Risk warning: Policy progress below expectations; significant deterioration in US-China relations; occurrence of unexpected risk events.