As the National Day golden week comes to an end, the A-share market, which has been closed for many days, is also about to return. Hong Kong stocks, as the main direction of increasing investment in Chinese assets during the holiday period, are still staging the final "rush for shares".

Entering the fourth quarter of 2024, the overall market sentiment has significantly improved, reaching a high level of about two and a half years, with an accumulated increase of over 5600 points in the past 15 trading days, up by 33%. $Hang Seng Index (800000.HK)$ From the trend of Hong Kong stocks since October, sector rotation seems to have quietly begun. In addition to the previous financial and real estate stocks, in recent days, the medical and technology sectors are about to take over the rise. Based on the past 4 trading days, the financial sector has accumulated an increase of over 18%, the medical care sector has risen by more than 15%, and the real estate and technology sectors have each increased by about 13%.

The market view believes that, overall, the policy support for the Hong Kong stock market remains unchanged, and it is important to continue to grasp the opportunities for sector rotation in terms of strategy.

Brokerage stocks, as the leader of the bull market, are still taking the lead, continuing to break through since October.

Brokerage stocks, as the leader of the bull market, are still taking the lead, continuing to break through since October. $CMSC (06099.HK)$ Cumulative increase of over 184% on the 4th. $SWHY (06806.HK)$ Cumulative increase of over 126%. $CSC (06066.HK)$ Increase of over 94%. $DFZQ (03958.HK)$Please use your Futubull account to access the feature.$CICC (03908.HK)$ Increase by more than 75%.

Medical stocks have recently started to show signs of activity, $PHARMARON (03759.HK)$ Rise over 60% cumulatively on the 4th, $TIGERMED (03347.HK)$ Increase by more than 40%, $WUXI BIO (02269.HK)$ Increase by more than 30%, $JUNSHI BIO (01877.HK)$Please use your Futubull account to access the feature.$WUXI APPTEC (02359.HK)$ All rose by over 26%.

Chip stocks have recently been popular. $HG SEMI (06908.HK)$ 4-day cumulative increase of nearly 290%, $SOLOMON SYSTECH (02878.HK)$ Up more than 90%, $SHANGHAI FUDAN (01385.HK)$ Up nearly 74%, $SMIC (00981.HK)$Please use your Futubull account to access the feature.$HUA HONG SEMI (01347.HK)$ Up over 50%.

Recently, CICC pointed out in its research report that with the introduction of new stimulus policies by the government, the Chinese stock market (including A-shares and H-shares) has seen a significant increase, especially in stocks of the semiconductor and communication sectors. The institution predicts that the semiconductor industry may have an opportunity for revaluation, and this market trend may continue in the short term, especially for semiconductor stocks listed in Hong Kong.

Real estate stocks have recently cooled slightly, but many of them still recorded decent gains. $CHINA VANKE (02202.HK)$Please use your Futubull account to access the feature.$SUNAC (01918.HK)$Please use your Futubull account to access the feature.$CHINA JINMAO (00817.HK)$ rising more than 40% on the 4th day. $RADIANCE HLDGS (09993.HK)$Please use your Futubull account to access the feature.$SEAZEN (01030.HK)$ Accumulated increase exceeds 23%.

CITIC Securities pointed out that since the launch of the policy combination on September 24, the Hong Kong stocks have shown a significant increase, with multiple indicators indicating that investors' sentiment towards Hong Kong stocks is very enthusiastic. Foreign capital has also shown a significant trend of increasing allocation to the Hong Kong stock market, with an accumulated inflow of 60.6 billion Hong Kong dollars in the short half month since September 16.

CITIC Securities believes that despite experiencing a rapid rise, the current valuation level of Hong Kong stocks is still in a position with relatively high cost performance compared to global markets and historical situations, especially the current valuation of the growth and large financial sectors is at a low historical percentile. Although the fastest phase of the rise driven by forced short covering trades may have passed, Hong Kong stocks are unlikely to have reached a temporary peak given the gradual implementation of policies and the continued 'excited' sentiment of investors. The valuation recovery trend of Hong Kong stocks is expected to continue until early November.

Editor/Somer