After the recent frenzy in the Hong Kong stock market, a significant adjustment occurred today, with the Hang Seng Index falling nearly 10% at one point. Many people are starting to question: Is the bull market over?

Actually, there is no need to panic. The reason for the start of this round of market is the change in policies and expectations. Since September 24, the unprecedented policy shift, from lowering mortgage rates to injecting liquidity into the stock market, directly addresses the pain points. So as long as the loose policy remains unchanged, the bull market can continue to run.

However, due to the large short-term gains, the probability of the first wave of widespread increases ending is high, and there will be a subsequent period of volatile market, which greatly tests investors' stock selection abilities. According to historical experience, in volatile markets, companies that steadily grow and continue to pay dividends tend to stand out.

Reviewing the mid-year high dividend-paying stocks, among them, Morning Cloud Group distributed dividends at a rate of 80% in 2023, and another 40% in mid-year of this year, with a high safety margin. The current total market value of the company is 2.3 billion, but its cash-like assets amount to as high as 2.665 billion, indicating its ability to sustain high dividends. Additionally, it has the strength to grow the pet sector through mergers and acquisitions and strategic investments, enhancing its long-term valuation. With a current PE ratio of 13, it may be severely undervalued.

In terms of core business, Morning Cloud Group is solid. Its fundamental focus is on home care, leading the industry in market share, with minimal exposure to macroeconomic fluctuations, demonstrating strong defensive capabilities and maintaining stable performance in the long term. In the first half of this year, the net income was 0.179 billion, a year-on-year increase of 31.5%, achieving growth against a challenging macroeconomic backdrop, surpassing the full year of last year. It is also strategic. The company is expanding into the second major growth track - pets, transitioning from initial online pet supplies and pet food to a complete industry chain of pets. This year, it has accelerated the establishment of offline pet stores, currently owning 57 stores, and initiated a franchising model, which has strong replicability. Through franchise stores selling Morning Cloud's own products, profitability can be further enhanced.

It is worth mentioning that foreign funds play a major role in the Hong Kong stock market, making foreign preferences more likely to influence the market direction in Hong Kong. After Goldman Sachs, Morgan Stanley, and others have been bullish on Hong Kong stocks, more foreign funds are preparing to enter the market. Morning Cloud Group, positioned in the sector of csi consumer 360 index and high dividend-paying companies, is precisely the track favored by foreign funds.