On Friday, A-shares in Hk tumbled across the board, with the Shanghai Composite Index down 2.01%, the Shenzhen Component Index down 2.23%, and the Chinext Price Index down 2.48%. In the HK stock market, the Hang Seng Index fell 2.09%, while the Hang Seng TECH Index dropped 2.63%.

From a weekly perspective, the CSI 500 Index, CSI 1000 Index, CNI 2000 Index, and CNI 2000 maintained weekly gains, while the Star 100 Index slightly fell by 0.69%. The three major HK stock indices continued to rise weekly, with the Hang Seng Index, Hang Seng TECH Index, and CNI Index increasing by 0.53%, 0.33%, and 0.7% respectively.

Gelonghui's latest weekly performance of the top ten core ETFs for 2024, "Global Perspective, Bet on China," was released, with the GFNZ100 performing the best this week, rising by 3.19%. The Hang Seng TECH Index ETF slightly increased by 0.98%, while the Star 100 ETF Huaxia (588800) showed notable resilience, seeing a slight decline of 0.44% this week.

01 Star 100 ETF Huaxia (588800) slightly decreased by 0.44% this week.

The Star 100 ETF Huaxia (588800) showed notable resilience, with a slight drop of 0.44% this week.

The Central Economic Conference in December proposed to lead the development of new productive forces through Technology innovation and to build a modern industrial system. It plans to carry out AI+ actions to cultivate future industries. Strengthening the construction of national strategic Technology capabilities.

The new productive forces assist in the conversion of old and new kinetic energy, ushering in a new era of high-quality development. The Star market has "hard Technology" attributes and plays a crucial role in promoting core technology innovation and economic transformation.

Policies regarding the Star market are continuously being introduced:

The Third Plenary Session of the 20th Central Committee pointed out the need to deepen the reform of the Technology system, coordinate the construction of various Technology innovation platforms, and promote Chinese-style modernization.

The proposal of the "Eight Measures for the Star Market" supports listed companies on the Star market to carry out mergers and acquisitions and integrations along the Industry Chain, enhancing the collaborative effect of the Industry. Ongoing support for Science and Technology policies empowers the upper, middle, and lower reaches of the Technology industry to develop together.

In the context of changes in the external environment, and the urgent domestic need for self-reliance in Technology and the requirements for the development of new productive forces, the Star market is expected to have a completely unexpected level of prosperity.

The CSI 100 ETF by Huaxia (588800) tracks the CSI 100 Index, which is concentrated in emerging growth industries represented by the CSI SWS Health Care index, Technology, and high-end manufacturing, with a relatively balanced distribution that is not easily affected by the prosperity of a single Industry, showing higher stability in growth and helping investors better enjoy the growth dividends of emerging industries in the future.

The GFNZ100 led the market this week.

The GFNZ100 performed the best this week, rising by 3.19%, with the year-to-date increase expanding to 34.35%.

In the USA, the PPI rose by 0.4% in November, exceeding expectations, while initial jobless claims unexpectedly increased last week. The three major US stock indices were soft on Thursday, with the Dow Jones falling by 234 points or 0.5%, closing at 43,914 points, marking a decline for six consecutive trading days; the GFNZ100 had its first close above 0.02 million points before experiencing a Top Reversal, closing near the day's low.

Guosen believes that the bull market for US tech giants has not yet reached its endpoint. The current valuation of AI computing power giants (mainly NVDA) only reflects one major model iteration (with parameters reaching the trillion-level), while models with parameters in the quadrillion-level are completely foreseeable. Therefore, it is believed that the long-term upward trend for semiconductor giants has not ended; buying now, even if a potential bubble goes through a cycle of creation and collapse in the future, is likely to not result in losses; whereas the pricing of Other Software and Internet giants is also considered sufficiently conservative.

GTJA believes that considering the current macro environment in the USA and the historical high valuations of US stocks, the profit margins for US stocks will be reasonably opened by 2025, with two main logic lines of 'Magnificent 7 + CNI Mid-Small Cap' and two secondary logic lines of 'Finance + Energy'. From the main line perspective, leading tech companies still hold allocation value, in addition to that, the allocation value of US mid-small caps benefiting from the logic of 'tax cuts + interest rate reductions + manufacturing return' will increase marginally. Regarding the secondary line, relaxing some industry regulations is not due to low policy priority, but because under the political system in the USA, the legal process required to relax regulations is relatively complex.

The Hang Seng TECH Index ETF slightly rose by nearly 1% this week.

The Hang Seng TECH Index ETF slightly increased by 0.98% this week.

Today, Hong Kong stocks experienced a significant decline. At the close, the Hang Seng Index fell by 2.09%, and the Hang Seng TECH Index decreased by 2.63%.

Ping An Securities pointed out that the latest Central Political Bureau meeting emphasized the implementation of a more proactive fiscal policy and appropriately loose monetary policy, enriching and improving the policy toolbox, and strengthening extraordinary counter-cyclical adjustments. Domestic monetary, fiscal, and industry policies are continuously being implemented, with gradual effects becoming evident. The Hong Kong stock market, which is currently at a relatively low valuation position, remains an important direction for allocating China assets. The simultaneous rise of Hong Kong stocks and A-shares on Thursday once again demonstrates that the risk appetite in the current China capital markets remains in a positive trajectory.