CITIC Securities: The high earnings growth of US stocks may no longer be concentrated only in leading technology companies, and the earnings contribution of non-tech sectors is clearly strengthening.

CITIC Securities released a research report noting that, with U.S. equities' performance decoupling from interest rates during China's long holiday, investors' focus will shift starting next week to the upcoming U.S. third-quarter earnings season. LSEG consensus estimates show that the S&P 500's 26Q3 revenue and earnings year-over-year growth rates are 1.2% and 45.0%, respectively, retreating on a quarter-over-quarter basis. At the sector level, energy, information technology, materials, and health care all have year-over-year earnings growth rates exceeding 50%. The high earnings growth of U.S. equities may no longer be concentrated only in leading technology companies, and the earnings contribution from non-tech sectors is clearly strengthening. As for Hong Kong stocks, although the overseas rate-hike cycle combined with the restart of AI momentum trades continues to weigh on liquidity, fundamental expectations have bottomed out, and the earnings growth expectations for major broad-based indices have begun to be revised upward. The adjustments to sector earnings expectations are notably divergent, with some niche segments seeing upward revisions, while earnings expectations for domestically demand-related sectors still face downward revision pressure. The upcoming third-quarter results will be an important basis for judging the progress of the recovery. We advise investors to remain patient with Hong Kong stocks and expect dividend strategies to remain relatively outperforming in the near term.