Huatai Securities: Technology and cyclical "consumables" lead the Hong Kong stock market rebound.

Huatai Securities pointed out that, macroscopically, external pressures such as US-Europe relations eased last week, the effect of the Federal Reserve's interest rate cuts has fully returned, domestic macroeconomic data stabilized, and real estate has shown high-frequency improvements. In terms of funding, foreign capital and southbound funds continue to flow in, with the fourth quarter public offering of Hong Kong stocks falling to 23%, significantly reducing potential selling pressure. IPO market fundraising and lifting restrictions have also slowed down. The sentiment index has returned to the neutral range, with bullish expectations increasing. We believe that a rebound in the first quarter is still anticipated, with emphasis on the upside potential and a fading gradient. In terms of industries, the focus is on AI chains and innovative drugs, continuing to suggest gradually absorbing high-quality consumer leaders and being overweight in the upstream sector of the cyclical and power chains.