Huatai Securities: Hong Kong Stock Recommended Focus on Three Key Directions in the Short-term

Huatai Securities research report stated that Hong Kong stocks fluctuated last week. On the one hand, driven by global "re-inflation" trading and the upgrading of domestic AI applications, rebound was seen in resource commodities such as colored metals, domestic computing power chains, and some software. On the other hand, concerns about changes in the AI landscape between listed and non-listed companies and the intensification of internal competition among e-commerce giants suppressed the performance of heavyweight stocks. Market volatility remains high, this week coincides with the Chinese New Year holiday, and the main factors affecting the market may come from the US stock market, consumer spending during the Chinese New Year, and progress in AI. In the short term, the US stock market may continue to show characteristics of differentiation and high-low cutting in the AI sector, with neutral impact on market sentiment. However, there have been new developments in domestic high-frequency consumer data and AI models. In the short term, it is recommended to focus on three key areas. First, storage and other semiconductor hardware. Second, characteristics of improving consumer sentiment. Restaurants benefit from platform subsidies, Chinese New Year consumption is a potential catalyst, the innovation drug sector's sentiment expectations continue to rise, and industry trends continue, both providing alpha opportunities. Third, electrical equipment. The logic of the rising demand for upgrading and renovating internal and external power systems remains unchanged in the medium term. The sentiment expectations for electrical equipment continue to rise. The passive fund inflow brought by the inclusion of Contemporary Amperex Technology in the Hang Seng Index is a short-term catalyst.