00HSI

<p>CICC analyzed the current operational strategy for Hong Kong stocks, pointing out that Hong Kong stocks have performed poorly since July, with the Hang Seng Index hovering around 25,000. Despite the strong performance of A-shares, investors remain skeptical about investment opportunities in Hong Kong stocks. Increased market volatility, along with fundamental, liquidity, and valuation factors, has led to Hong Kong stocks underperforming A-shares. The analysis suggests that the decline in profit growth, tight liquidity, and low valuations are the main reasons</p>

- The article discusses the contrasting performances of A-shares and Hong Kong stocks, noting that while A-shares have surged since July, Hong Kong stocks have stagnated around 25,000.  
- It highlights three phases of market performance this year, emphasizing that A-shares are catching up to previously strong Hong Kong and U.S. markets, driven by liquidity and fundamental factors.  
- The article concludes by suggesting that investors should focus on sectors with strong growth potential, such as pharmaceuticals and technology, while being cautious about overall market volatility and liquidity conditions.

CICC: Hong Kong Stock Operation Strategy Under Current Market Conditions