Looking ahead, Hong Kong stocks are disturbed by overseas tariffs and liquidity in the short term, Guotai Junan International released a report saying.

With the effect of increased domestic policies and continuous economy recovery, the valuation level of Hong Kong stocks will have room for expansion in the long term, with new upside momentum gradually forming. Hence, attention should be paid to the technology industry.

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Although US President Donald Trump's tariff policies may still affect Hong Kong stock expectations, including the potential liquidity fluctuations caused by ceiling breakthrough of US debt, the overall impact is marginally weakening.

In the short term, quality premium sectors such as central SOEs (banks, telecoms and utilities) remain the 'ballast' of investment portfolios. In the medium to long term, technological innovation will lead the development of new quality productive forces, representing the new momentum for China's economic growth and Hong Kong stock increases.

Under the dividend reinvestment model, the Hang Seng High Dividend Yield Index has risen nearly 120% over the past 10 years, outperforming the HSI. The current Hang Seng High Dividend Yield Index dividend yield exceeded 8 ppts, far higher than the 10-year US treasury yield level, still having higher allocation value.

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