A：Last week, the market showed a trend of rising and then falling, with the Shanghai Composite Index down 0.44 per cent, the Shenzhen Composite Index down 1.62 per cent and the GEM index down 0.09 per cent. The average daily turnover of the two cities increased to 3063 billion yuan. The industries that performed better were petroleum and petrochemical, communications, coal and non-ferrous metals. Among them, non-ferrous metals rose higher before Thursday, but there was a correction on Friday.

A：January's PMI data show that the manufacturing supply and demand index has fallen, the market constitutes a relatively negative information. The marginal slowdown in the growth rate of general budget revenue and the improvement in spending intensity in December led to an increase in the gap in the fiscal dimension.

A：As the economy stabilizes and the demand for social asset management increases, the prices of sub-leaders and heavyweights in the technology and non-technology sectors are expected to improve. The main line of technology growth is a key part of the market, and the technology sector of Hong Kong stocks is more in line with this main line. In addition, the non-bank financial sector due to deposit moving and wealth management demand growth and opportunities, pro-cyclical products such as real estate, building materials, steel, non-ferrous, chemicals, etc. due to low valuations, tight supply and demand and price opportunities.

A：At its January meeting, the Fed kept interest rates unchanged, in line with market expectations. In the job market, the unemployment rate has fallen steadily, in line with the natural unemployment rate trend, easing the Fed's concerns about the deterioration of employment; inflation has slowed but is still above the 2% target, the impact of commodity inflation is likely to peak in the middle of the year, and service inflation is declining. As a result, the Fed believes there is no need to cut interest rates at this time, but in the long run, it has plenty of room to cut interest rates, with two rates expected in 2026, with the first rate cut likely to be postponed to the second quarter.

A：The U.S. economy is growing more tenacious on the surface, but in reality, the dividends from economic growth are more concentrated in high-income groups, resulting in an income structure that benefits more from those at the top of the pyramid. Middle-income people still face varying degrees of affordable pressure. Therefore, the problems of the US economy need to be gradually solved through interest rate regulation. The newly released January consumer confidence index hit the lowest level since 2014, indicating that American households are worried about the future economic outlook. This reveals that even with economic growth, if the problem of unequal income distribution cannot be effectively solved, it will be difficult to achieve sustainable economic growth and social stability.

A：As the "Spring Festival Gala" in the field of science and technology, CES held a major event focusing on the AI industry chain in Las Vegas this year. Key trends include a comprehensive upgrade of AI computing bases, accelerated popularization of AI and intelligent hardware, and increasingly competitive automotive intelligence. The AI has been deeply integrated into the smart travel ecology, from the chip to the vehicle host plant, all fields have AI-enabled new results show.

A：The CES meeting revealed that AI-centric system-level technological change has become a key observation window for AI application landing, from basic support to AI simulation training to real-world deployment. International mainstream institutions continue to pay more attention to China's technology assets, predicting that China's real GDP growth in 2026 may be higher than market expectations, and A- shares and Hong Kong stocks are bullish. Among them, advanced manufacturing and independent core technology are the main growth engines, and the pace of China's AI realization is also in a leading position.

A：In the Hong Kong stock technology sector, the three quarterly reports of leading Internet companies show that after experiencing intensified market competition and increased investment, irrational competition in some businesses such as the takeaway market has reached its peak. With the market adjustment and profitability improvement, the Internet leader is expected to gradually get out of the predicament, showing better growth space and supporting the future performance of the index.

A：The investment of Internet giants in the field of AI is gradually increasing, and the capital expenditure in 2025 will increase significantly, especially in the fields of AI large model training and intelligent computing center, which directly drives the demand of the upstream industry chain.

A：Tech giants are experiencing a shift from traffic competition to ecological capability competition. The development of AI has prompted them to no longer just compete for user traffic, but to gain an advantage by building their own ecosystems. For example, the cloud business due to the accelerated development of AI demand, the profit margin is relatively stable, advertising, AI empowerment is more customized, click-through rate is expected to increase by 15% to 20%, while the ecological entrance is also due to the AI of intelligent body and face reconstruction.

A：In the cloud business, AI drives domestic and foreign technology giants to accelerate revenue growth and maintain stable profit margins, especially Hong Kong stock cloud manufacturers in the AI investment period did not face too much cost pressure, and now can also use the generation AI to achieve cost reduction and efficiency and bring additional benefits. In the advertising field, the AI assists in advertising cover design, scene adaptation and user conversion attribution to improve the realization effect. In terms of ecological entry, mainstream technology platforms introduce AI assistants to enhance ecological value and then tap commercial value.

A：Although Hong Kong stocks were once stagnant in AI development, the AI industrial chain evolved synchronously around the world, and the overall performance of the Hong Kong stock market was not bad after the third quarter. With the theme of the AI expected to continue to receive attention in 2026, as well as the acceleration of the independent and controllable pace of domestic computing power and the arrival of the turning point in the industry, the Hong Kong stock technology sector, especially the leaders in semiconductor chip manufacturing and AI computing power, is expected to welcome the opportunity to make up for the increase, and with the gradual landing of AI applications, the whole sector will show a good growth trend.

A：We think short video is one of the beneficiary categories. AI-produced videos are increasing in short video applications, even reaching the level of fake and real, which will have a significant impact on video content creation and may bring multiple enablement such as subscription revenue and lower creative threshold.

A：Cross-border cooperation between AI technology and mobile phone manufacturers, such as the development of AI mobile phones at the operating system level, can realize convenient functions such as ordering takeout, booking air tickets and price comparison shopping, etc., forming a system-level housekeeping function. Although it may have an impact on the existing mobile Internet ecology, it has innovatively demonstrated the application potential of AI digital housekeeping. An Internet company cooperated with a number of hardware manufacturers to pre-install AIGC plug-ins for mobile phones to obtain user access. At the same time, a concert introduced humanoid robots to accompany the dance for the first time, demonstrating the robot's precise click rhythm and ability to complete difficult movements in the performance, indicating that the robot's limb potential is expected to surpass that of human beings.

A：According to the 14th Five-Year Plan proposal, AI intelligence, multi-modal applications and other cutting-edge technologies to accelerate the commercialization of landing, Hong Kong stock technology as the core gathering place of domestic AI, will directly benefit from the policy dividend, especially in the AI computing power, new energy, semiconductors and other fields, the strategic position of leading enterprises is more significant.

A：Hong Kong stock technology sector is currently in the global valuation depression, the Hang Seng Index and Hang Seng Technology PE value is lower than other major indices, and the technology index is usually higher valuation, so Hang Seng Technology has a higher margin of safety and valuation repair space. In the context of the continued repair of fundamentals and the injection of funds from the south, the investment cost performance of Hong Kong stock technology stocks is highlighted.

A：The Hang Seng Hong Kong Stock Connect China Technology Index is compiled by Hang Seng Company, which is characterized by better liquidity of all constituent stocks within the scope of the Hong Kong Stock Connect, and emphasizes investment in the more representative of China's technology. The index industry distribution, AI-related weight is high, covering the semiconductor equipment, cloud services, smart terminals and other AI of the whole industry chain, leading a high proportion and has a good investment advantage.

A：The upper limit of the index's weight on a single stock is adjusted to 12%, and the top five constituent stocks can account for about 60%, with a high concentration of leading stocks overall.

A：Investors can seize opportunities through fixed investment, a long-term investment method, which has the advantages of diversifying the risk of market volatility, diluting the overall investment cost, lowering the investment threshold and overcoming human weaknesses to avoid emotional operations.

A：The advantages of fixed investment are: first, it can disperse the risk of market fluctuation and dilute the investment cost; second, it lowers the investment threshold, which is suitable for ordinary investors to participate; third, it overcomes the weakness of human nature and reduces the loss caused by irrational decision-making. Investors can choose a "core satellite" allocation strategy based on market conditions, or use an ETF grid trading strategy. When bullish on a market sector or industry theme trend, the use of core asset bottoming, satellite asset enhancement portfolio model; in the sector market volatility, through the volatility of the grid trading to obtain income.

A：Steady investors can increase the proportion of core assets, while aggressive investors can appropriately reduce the proportion of core assets and increase the proportion of satellite assets. The core part can be invested in broad-based index products such as A50ETF or A500 etf, while the satellite part can be configured with more flexible industry-themed products such as technology Hong Kong 30 etf, CRE artificial intelligence etf, and brokerage ETF to balance the risk-return ratio of the portfolio.