Galaxy Securities in China: Optional consumption is currently the strongest direction in terms of performance growth and profitability among all sectors of Hong Kong stocks.

A research report by China Galaxy Securities stated that the resilience of the Hong Kong stock market comes from its low valuation, which has attracted risk-averse funds seeking certainty. Foreign capital is choosing to enter the Hong Kong market largely due to the valuation gap between Hong Kong stocks and other major global markets. The low valuation of Hong Kong stocks is typically accompanied by a high dividend yield, which is highly attractive to risk-averse funds seeking stable cash flow. Looking ahead to the next six months, the consumer discretionary sector is currently the strongest in terms of growth and profitability among all sectors of the Hong Kong stock market, while the financial sector has sufficient safety margin. The technology sector has shown dual attributes during this period of volatility.