Two key meetings will be held in December: the Politburo meeting and the Central Economic Work Conference.

After major broad-based valuations have repaired to the central position, the market is about to welcome the verification point of "decisive victory in winter."

GF sec believes that if the official target deficit rate is raised further, for example expected to approach 4%, then the index will open up a "cross-year market", with the market trading cyclically improving assets' fundamental expectations, such as ah stocks. Typical representatives of assets: Hong Kong stocks internet (hang seng tech index), A-shares csi consumer 360 index (baijiu(chinese liquor)), large finance, etc.

As a global value lowland, the fund situation in Hong Kong stocks may welcome substantial improvement, with the valuation of sectors such as Hong Kong internet platforms significantly underestimated after three years of adjustments, thus southbound capital continues to increase its positions in the Hong Kong stock market.

Kaiyuan Securities research reports indicate that in the next six months, a package of policies is expected to successively stimulate the fundamentals of the chinese economy, which can provide support for the Hong Kong stock market. The subsequent macroeconomic prosperity and corporate profit recovery are expected to bring more active long-term capital back, and the Hong Kong stock market may still have significant upside potential. Hong Kong tech leaders possess cyclical recovery attributes, while benefiting from the long-term industry trends of AI, they hold long-term allocation value. The growth and valuation comprehensive cost-performance advantage of the internet sector remains prominent, suitable for stable bottom warehouse allocation.

According to jpmorgan asset management, when fiscal policy begins to take effect, chinese stocks may experience another round of sector rotation, shifting from ongoing themes such as semiconductors and wind power to internet and consumer products.

Core enterprises of Hong Kong stocks internet platforms include:

Tencent (00700), Alibaba-W (09988), NetEase-S (09999), jd.com Group-SW (09618), baidu Group-SW (09888), Meituan-W (03690), and Ctrip Group (09961) among others.