On October 8, news emerged that the Hang Seng Tech Index dropped over 2% to 4,102.21 points, marking a new low since September 2024 and representing a pullback of nearly 39% from last October's high of 6,715.46 points.

Among constituent stocks, MINIMAX fell over 11%, Zhipu dropped more than 8%, Lenovo declined over 6%, and Tianshu Zhixin slid nearly 5%.

A research note from CITIC Securities stated that amid overseas risk-free rates remaining elevated, renewed momentum trading in AI hardware, and the absence of southbound capital, Hong Kong stocks performed weakly during the long holiday period.

However, earnings expectations for major indices other than the Hang Seng Tech Index have begun to stabilize and be revised upward. Additionally, the Hang Seng Tech Index's forward PE has now fallen to 14.6 times, approaching the low seen in early April last year when the "reciprocal tariffs" broke out.

Overall, after two consecutive months of sustained correction in Hong Kong stocks, the value of allocation is beginning to emerge. Looking ahead, if a series of new domestic property policies can drive a positive wealth effect to return and domestic demand starts to recover, we are optimistic about a "earnings plus valuation" double-engine rally for Hong Kong stocks in the fourth quarter of this year.