Huatai Securities: The importance of balanced allocation in the Hong Kong stock market has become more prominent in the market fluctuations this week.

huatai securities research report pointed out that last week, the Nikkei 225, Korea Composite Index, Nasdaq, and Hang Seng Tech Index all fell by 4.1%, 3.7%, 3.0%, and 1.2% respectively. The pullback of large AI technology-related companies has attracted greater attention, with Mag7 leading the decline with NVIDIA falling by 7.1%, while Tesla and Meta also experienced significant declines, and Amazon and Apple showed more resilience. Hang Seng Tech has been adjusting since early October, and the high point on October 2 coincided with the time when Huatai's Hong Kong stock sentiment index entered the greedy zone. Subsequently, the market faced tariff disputes during the pullback process, and the overall trend was weak. In the previous weekly report, we continued to emphasize that short-term timing for "buying the dip" trading will take time. As of last Friday, the VIX rose to 19.1, while the Hang Seng Volatility Index remained relatively stable.