Founder: The Hong Kong stock market is expected to see a recovery in risk appetite. It is recommended to focus on opportunities for high prosperity in emerging industries.

Founder released a research report stating that as the New Year market gradually unfolds, the market is expected to transition from "volatile accumulation" to "spring frenzy". A-share quality assets have a higher cost performance ratio globally, and it is recommended to focus on technology growth, cyclical sectors resilient to supply-demand imbalances, and blue-chip assets preferred by long-term investors. Regarding the Hong Kong stock market, the continuous acceleration of southbound funds flowing into the Hong Kong stock market provides solid financial support. The Federal Reserve's rate cut in December and restart of balance sheet expansion bring global liquidity looseness, and Hong Kong stocks are expected to benefit from foreign capital inflows and risk appetite restoration. It is suggested to pay attention to the rising opportunities in high-demand emerging industries represented by the Hang Seng Technology Index. Founder's key points are as follows: A-share perspective: With the New Year market gradually unfolding, the market is expected to transition from "volatile accumulation" to "spring frenzy". A-share quality assets have a higher cost performance ratio globally, and the focus should be on three main directions: long-term industry trend opportunities, cyclical sectors with strong price elasticity driven by supply-demand imbalances, and blue-chip assets suitable for long-term investment. Hong Kong stock perspective: It is recommended to focus on the rising opportunities in high-demand emerging industries represented by the Hang Seng Technology Index. The recent easing of US-China trade tensions is favorable for boosting market risk appetite. The continuous acceleration of southbound funds into the Hong Kong stock market provides solid financial support. Additionally, the Hong Kong stock market responds well to global liquidity improvements, weakening US dollar, and restored risk appetite. The Federal Reserve's rate cut in December and restart of balance sheet expansion bring global liquidity looseness, benefiting Hong Kong stocks from foreign capital inflows and risk appetite restoration. US stock perspective: Although US stock profit for 2025 remains stable, valuation and market concentration have reached historical highs again, implying increased volatility at the current level. US stock profit for 2026 is expected to continue with high growth, mainly benefitting from AI prosperity, further reduction of tariff risks, and an expansionary monetary and fiscal policy. Investment in US stocks could focus on two main lines: the technology sector and cyclical sectors. Domestic bond perspective: The future will enter a complex game stage of "weak economic recovery, stable policy tending towards easing, and central bank guarding against excessive risk". The central bank's "stable interest rate" stance will restrict the downward space of long-term interest rates, and it is expected to remain in a range-bound pattern while lacking a basis for substantial upward movement. Short-term interest rates, under the protection of "maintaining ample liquidity", have high stability, favoring leverage strategies. Investors should lower their expectations for capital gains, shift strategy focus to coupon income and liquidity management, and closely monitor potential guidance signals from the central bank on long-term yield rates. US bond perspective: The lower-than-expected US November inflation data did not lead to significant downward movements in bond rates. Looking ahead, with employment market yet to show significant improvement, the Federal Reserve is likely to remain vigilant. Long-term US bond rates may continue to decline, but the extent could be limited, with ongoing attention to marginal changes in US fiscal policy and December employment and inflation data. Commodity perspective: As anti-"internal competition" policies continue to push forward, attention should be given to the practical implementation of subsequent capacity reduction policies. (1) Oil: Geopolitical tensions easing and OPEC+'s strategic shift towards continued supply expansion could keep oil prices under short-term pressure; (2) Industrial Metals: Upward revision of global economic growth expectations driving demand recovery, supply-demand restructuring disruptions frequent, under a loose liquidity environment the valuation central trend is likely to move upwards; (3) Shenzhen Agricultural Power Group: Significant differences exist among different subcategories; (4) Precious Metals: Global economy remains in a phase of government leveraging, especially for the US, the difficulty of reducing medium-to-long-term deficit rates highlights gold's monetary attributes, providing continued positive support. Risk alert: Macro-economic support policies falling short of expectations, geopolitical risks exceeding expectations, persistent global inflation issues, dramatic fluctuations in overseas markets, setbacks in US-China trade negotiations, etc.