&#34;According to the Economic News Agency on the 6th,&#34; under the shadow of high valuations, U.S. stocks were hit, prompting the Federal Reserve to take action to stabilize the market. Dovish board member Milan indicated that inflation remains below expectations, and continuing to cut interest rates is still a reasonable measure. U.S. stocks rebounded the following night. Hong Kong stocks opened over 100 points higher this morning, with interest-paying stocks continuing to perform strongly during the session, while chip stocks and technology stocks also rebounded together. By lunchtime, the Hang Seng Index's gains expanded to over 500 points, ultimately closing near the day's highest point at 26,485, up 550 points or 2.1%, with a main board turnover of nearly HKD 234.7 billion. The National Enterprises Index closed at 9,355, up 192 points or 2.1%. The Technology Index closed at 5,944, up 158 points or 2.7%.
The Federal Reserve's balanced interest rate cut expectation strategy has proven effective. With a month remaining until the next meeting, the chance of a 0.25 basis point cut has dropped from over 90% before Fed Chairman Powell's &#34;verbal intervention&#34; to about 60% now, cooling market expectations for rate cuts. In Hong Kong, there is also some rebound momentum after a sharp drop, but based on yesterday's low, the Hang Seng Index has rebounded over 800 points in two days. However, the market turnover during the day is significantly weaker than when the market surged in September, maintaining above HKD 200 billion, which is expected to be insufficient to constitute a breakthrough for the market, with resistance anticipated at 26,600.
<ul>
<li>Chip stocks and AI stocks rebound strongly, interest-paying financial and special valuation stocks continue to soar *
Technology and chip stocks rebounded across the board, with chip stocks showing even stronger momentum. Earlier reports indicated that the mainland required all newly established data center projects funded by national capital to use domestically produced AI chips. Throughout the day, SMIC (00981) rose 7.3% to HKD 76.95; Hua Hong (01347) rose 9.1% to HKD 80.1. Alibaba (09988) rose 4.1% to HKD 165; Tencent (00700) rose 2.4% to HKD 644; Xiaomi (01810) rose 0.3% to HKD 43.44; Baidu (09888) rose 1.9% to HKD 123.9.</li>
</ul>
The market's capital preservation trend remains strong, with interest-paying stocks continuing to explode, and financial stocks and special valuation stocks leading blue chips; AIA (01299) rose 2% to HKD 81.2; Hong Kong Exchanges and Clearing (00388) rose 2.2% to HKD 433; HSBC (00005) rose 3.1% to HKD 110.7; Ping An (02318) rose 3.1% to HKD 58; China Life (02628) rose 4.9% to HKD 25.9; Shenhua (01088) rose 2.7% to HKD 42.6; CNOOC (00883) rose 2.7% to HKD 20.88; CLP (00836) rose 1.4% to HKD 19.31.
<ul>
<li>Gold prices rise back above USD 4,000, boosting gold mining stocks, while steel and aluminum stocks soar by 10% *
After concerns about high valuations eased, gold prices were once again sought after by investors. By the end of the Hong Kong market, the spot gold price had returned to USD 4,000, reporting around USD 4,005 as of 4 PM. Gold mining stocks rebounded across the board; Zijin (02899) rose 4.3% to HKD 32.06;
Zijin Gold International (02259) rose 8.7%, closing at HKD 137.9; Zhaojin Mining Industry (01818) rose 2.7%, closing at HKD 29.1; Shandong Gold (01787) rose 2.8%, closing at HKD 32.38.
The non-ferrous metal stocks rebounded following the rise in gold prices, while steel and aluminum stocks were boosted by speculation on the supply-demand imbalance of electrolytic aluminum, with China Hongqiao (01378) surging 9.9%, closing at HKD 32.42, making it the best-performing blue chip of the day; Chalco (02600) rose 11.2%, closing at HKD 10.93; Nanshan Aluminum (02610) rose 5%, closing at HKD 46.9; Tiangong International (00826) rose 7.6%, closing at HKD 3.11; Ansteel (00347) rose 4.4%, closing at HKD 2.13.
\* Utility stocks are stable and offer dividends, with Dongfang Electric benefiting from both the Yajiang and nuclear power concepts showing upward momentum *
Dividend-paying stocks are hotly traded, and many previously stagnant utility stocks have suddenly stirred up a wave. Utility stocks are relatively stable in performance, providing both income and defensive functions during future interest rate cuts. Power stocks followed suit today, but related power generation equipment stocks are also worth noting.
Macquarie published a research report in August mentioning the top ten key focus areas for the next decade, highlighting that with China's investment in semiconductor core construction, leading nuclear power companies provide support for base load power plants, presenting significant opportunities for related stocks, including Dongfang Electric (01072), China Nuclear Power (Shanghai: 601985), and China General Nuclear Power (01816). In July this year, benefiting from the development of the Yarlung Tsangpo River trillion hydropower project, Dongfang Electric's stock price surged by 60% in one day. Currently, the concept's heat has cooled down, making it a good opportunity to accumulate shares around HKD 20 for medium to long-term holding, with an upward target of HKD 40. (hc)</li>
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688981

00981

688347

01347

Hong Kong stocks rebounded more than 500 points today, closing at 26,485 points, an increase of 2.1%. The trading volume was nearly HKD 234.7 billion, significantly lower than in September, and it is expected that the upper resistance will be at 26,600 points. Technology stocks and chip stocks rebounded strongly, with SMIC rising 7.3% and Hua Hong rising 9.1%. Dividend-paying stocks performed well, with AIA, Hong Kong Exchanges and Clearing, and HSBC all seeing increases. U.S. stocks rebounded, and expectations for interest rate cuts cooled, leading to an improvement in market sentiment

- U.S. stock markets faced pressure due to high valuations, prompting the Federal Reserve to stabilize conditions, with dovish comments suggesting continued rate cuts are reasonable.  
- Hong Kong stocks opened strong, with the Hang Seng Index rising over 550 points to close at 26,485, driven by rebounds in technology and chip stocks.  
- Gold prices climbed back above $4,000, boosting mining stocks, while aluminum and steel shares surged amid supply concerns, indicating a positive market sentiment.

etnet

SMIC

Hua Hong

HUA HONG SEMI

"Post-Market Deployment" Hong Kong stocks rebound over 500 points, but trading volume is low, expected to limit the upward trend; Dongfang Electric has a promising outlook and is worth holding