Hong Kong stocks hit a record high on December 6, 2024.

I. Market environment

Market environment, expectations for the meeting on Friday, December 12th, with the Hang Seng Index breaking through to the upside on large volume. Component stocks, China Securities +0005 performed well, while ICBC 1288 hit a new high, Tencent in the technology sector broke through to the upside on Friday, and Xiaomi returned to a high point. Sectors, biomedical outsourcing, and the Apple supply chain led the gains. From a sustainability perspective, the Apple supply chain is the best performer (Apple in the peripheral market is also the first among large market cap varieties to reach a historic high, with a sustainable trend). AI applications are fluctuating at a high level, with Bitcoin 0434 continuing to reach new highs, and outbound + grain economy 9896 breaking through to the upside. Market structure, indexes stabilize, small stock environment, mapping between A-shares and US stocks, filling the gap in structure. Rotation this week to China Securities, with a focus on consumer stocks on Friday.

Hong Kong stocks hit a record high on December 6, 2024.

Market Themes

Macro logic: 2025 macro environment - major hedging; Three directions, bond, real estate, consumer - stabilize this week, with expectations of a mid-December meeting.

Era environment: AI applications (including robotics), grain economy (activating commercial real estate), Bitcoin

Market theme: AI applications (new direction in the AI era) fluctuate at high levels, Guzi economy miniso breaks through upwards. Hedging stabilizes; the direction of the special valuation is good, domestic banks begin to reach historical highs; Siasun Robot&Automation, Suteng Juchuang break through upwards; electric vehicles direction 1810 closing price hits a new high; consumer, overall bounce on Friday, Guzi economy is a positive segment direction.

Strategy: From the perspective of indices, HK stocks are at the last position among the three markets, with the correlation with A shares and US stocks concepts, there are positions to buy, miniso is a long-term variety, continue to pay attention.

1. Non-banking sector (debt monetization, brokerage, insurance)

Stabilizing.

2. Domestic real estate

Bottom fluctuation

3. Consumer (including electric vehicles)

$XIAOMI-W (01810.HK)$ , rebounded to a new high

$POP MART (09992.HK)$Continue to move towards historical highs.

$MINISO (MNSO.US)$ Breakthrough upwards

The sector that best represents consumer is $MEITUAN-W (03690.HK)$ Bottom oscillation

4. AI applications

AI entering the era of applications, $MOBVISTA (01860.HK)$ High-level volatility $KINGSOFT CLOUD (03896.HK)$Rebound to new highs. Leading APP in the US stock market, PLTR continues to reach new highs.