CITIC Securities: The worst is over, which may support the continuation of the Hong Kong stock market trend.

CITIC Securities' research report points out that in the past month, the Hang Seng Composite Index has experienced a reversal in earnings expectations, with better-than-expected interim results and positive forecasts driving an upward revision of annual profits. In contrast, the Hang Seng Tech Index is constrained by differentiated profitability in the passenger car sector and the pressure on short-term profit margins from the capital expenditure expansion of leading internet platforms, leading to a relatively delayed expectation recovery. Industrially, healthcare, finance, utilities, and cyclical transportation are experiencing an upswing; meanwhile, expectations for consumer, real estate, and information technology sectors have been lowered. On the trading front, there is a dual approach characterized by the replenishment of funds into oversold sectors and trading in high-prosperity performance momentum. In the face of a concentrated period of financial report disclosures and domestic and international macro disturbances, the allocation strategy remains a "dividend defense + growth flexibility" barbell strategy: on the defensive side, focus on high-dividend, low-beta bond-like assets; on the offensive side, concentrate on internet giants, robotic and biotech sectors with increasing two-way funding, along with a balanced layout in innovative drugs and industrial metals as catalysts.