Jingwu Financial News | Guoyuan International believes that the recent performance of Hong Kong stocks is under pressure from both internal and external factors. On one hand, market performance faces pressure from disappointing fundamental data and a decrease in risk appetite from investors. On the other hand, a policy mix and accelerated issuance of special bonds are expected to stimulate a mild recovery of the economy. Therefore, the current Hong Kong stock market is in a volatile pattern, and it is difficult to break out of this volatility in the short term. Attention can be paid to high-dividend, policy-supported, and leading internet companies with comparative advantages in structural sectors. In the US stock market, the PE and market cap levels have reached historical highs, leading to concerns that future performance growth may not support existing valuations. If growth slows down, the secondary market is likely to experience significant downward pressure. Looking ahead, against the backdrop of a recovering global economy and declining financing costs, the global economic growth rate in the fourth quarter is expected to remain stable, which should also maintain demand for internet IT services, hence a high probability of meeting performance expectations. Therefore, the equity market is likely to focus on volatile fluctuations in the near term.

The bank suggests paying attention to China Lit (00772), Newborntown (09911), Tencent (00700), and Kingdee Int'l (00268), while in the US market, it is recommended to focus on AI and consumer recovery-related symbols, including Google (GOOGL.US), Microsoft (MSFT.US), Amazon (AMZN.US), Booking Holdings (BKNG.US), Spotify (SPOT.US), and Amazon (AMZN.US).