Huatai Securities: It is expected that the verification period will not change the trend of the Hong Kong stock market's central point moving upwards.

Huatai Securities pointed out that in the first half of last week, mild inflation in the United States boosted expectations of a rate cut by the Federal Reserve, quickly reversing the market's concerns about recession following a significant downward revision in job data. Along with better-than-expected earnings reports from several top companies and policies such as interest subsidies for domestic consumer loans, the Hong Kong stock market quickly rose, led by growth stocks. In the second half of the week, domestic economic data cooled marginally, causing the market to once again focus on event-driven and thematic trading. Since August, the index has continued to show an upward trend in volatility, indicating increased fluctuations. Currently, the market is at a critical stage with a relative lack of trading themes and important events both domestically and internationally awaiting validation, making it a window for position adjustments. Despite this, we are not pessimistic about the future market trends. From a mid-term perspective, it is recommended to focus on: 1) leading companies in the gaming and internet e-commerce sectors with high valuation and cost-effectiveness in a high prosperity environment; 2) innovative pharmaceuticals and large financial companies that have seen significant valuation corrections but have high earnings expectations and potential upward revisions, including local financial stocks in Hong Kong.