Huatai Securities' Hong Kong Stock Strategy: Market correction brings structural opportunities.

Huatai Securities issued a research report on Hong Kong stocks, stating that the recent correction in Hong Kong stocks is mainly due to adjustments in internal and external expectations, but the logic of loose liquidity in the medium term remains unchanged. In terms of allocation, it is recommended to look for sectors with improving economic conditions and low valuations, with a strong emphasis on the technology sector. For short-term trading, focus on interim performance reports and pay attention to: 1) gaming and internet e-commerce leaders with cost-effective valuations and improving economic conditions; 2) companies with slightly higher forward 12-month valuations but high profit realization rates, such as innovative pharmaceuticals and non-bank financial companies in the Hong Kong stock market.