CITIC Securities' Huang Wentao: Hong Kong stocks welcome the final trading window of the year.

Chief economist Huang Wentao and his team at CITIC Securities wrote in their latest research report that after experiencing a unilateral rise in September, Hong Kong stocks have experienced volatile adjustments since October due to the repeated impact of overseas macroeconomic expectations. Currently, both the A and H markets are synchronously undergoing a mid-term adjustment, with some high-quality assets in Hong Kong stocks re-entering the high price-performance ratio range. With the continuous allocation of Northbound funds, the repair of profit expectations, and the resonance of the improvement of the domestic and foreign macroeconomic environment at the end of the year, Hong Kong stocks are ushering in an important trading window at the end of the year that cannot be ignored. In terms of allocation selection, Huang Wentao's team believes that with the rise of domestic long-term interest rates and the opening of the trend of economic recovery, the defensive properties of dividend investment in Hong Kong stocks will be weakened. In the future, strategies need to focus on high-quality targets with strong dividend sustainability, stable profits, and high marginal valuation safety. At the same time, the growth sector that underwent a deep adjustment due to style switching in the previous period may lead the market with high profit elasticity as market sentiment improves and macro uncertainties fade. Focus on sectors such as the internet, innovative medicine, and new consumption.