According to the Wisdom Financial APP, the Hengke Index surged by more than 9%, reaching a high of 5200 points during the day, hitting a new high since February 2022. In terms of component stocks, network technology stocks surged across the board in early trading, with Bilibili-W (09626) rising by 21.78% to HK$236; Meituan-W (03690) rose by 15.12% to HK$198; JD.com Group-SW (09618) rose by 12.21% to HK$187.5; Baidu Group-SW (09888) rose by 10.8% to HK$117; Tencent (00700) rose by 6.93% to HK$475.4.

On the news front, Guotai Junan International believes that the Fed's announcement of rate cuts and the start of a rate-cutting cycle, combined with domestic policy dividends supporting the stock market development, is a substantial bullish factor for the valuation of the Hong Kong Internet sector. First, due to the global market liquidity brought by the Fed's rate cuts, it is conducive to the flow of international capital into higher-risk assets. The current valuation of the Hong Kong Internet sector is at a historical low, and in the future, performance growth will be driven by cost reduction, efficiency improvement, and technological iteration, further enhancing safety margins and continuously increasing attractiveness to funds.

The bank pointed out that last Tuesday and Thursday, a series of heavyweight policies and important meetings in the domestic market, surrounding the dimensions of monetary, fiscal, and market stimuli, have significantly reversed the market's previous pessimistic expectations, with investment sentiment spreading from domestic to overseas markets. The bank believes that after the short-term rally, due to the market's optimistic expectations for policies, there will still be upward momentum in the short term. Currently, the main investment themes should revolve around gaming, AI applications, and the layout of the cloud computing service industry.