On October 2nd, Hong Kong stocks deepened their declines, with the Hang Seng Index and the Hang Seng Tech Index both falling more than 3%.
Among the constituent stocks of the Tech Index, KUAISHOU-W (01024), BILIBILI-W (09626), and XIAOMI-W (01810) dropped over 5%, while LI AUTO-W (02015) and others fell more than 4%.
Earlier, a research report noted that although historical experience shows Hong Kong stocks tend to see short-term rebounds during long holidays, the current market has not accumulated enough bearish momentum to create a high payoff ratio, making ultra-short-term trading opportunities less cost-effective.
In terms of sector allocation, dividend plays remain the core holding. Investors should control exposure to banks and coal, where the dividend yield advantage relative to A-shares is narrowing and the payout ratio is difficult to increase significantly, and focus on more cost-effective directions such as oil and gas.
Innovative drug and CXO leaders have already recovered amid the pricing-in of U.S. rate hikes. They can continue to be held, but beta elasticity is limited, requiring careful stock selection and well-set take-profit levels. Essential consumer sectors such as beverages and dairy products are already at the right side of the fundamental bottom, lacking catalysts, so patience is needed.
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