Industrial Securities notes that the Hong Kong stock market will continue its bullish trend in 2026, with the market moving upward in a fluctuating pattern akin to a “torch relay up a mountain.” The main investment themes will center on “growth capitalizing on momentum and value restructuring dividends.” From a fundamental perspective, the year-on-year growth rate of net profits for Hong Kong Stock Connect constituent stocks is expected to reach 7.3% in 2026, with sectors such as information technology, non-essential consumer goods, and healthcare leading the way. This improvement in earnings will provide solid support for the market. Meanwhile, the dual returns of “capital appreciation and foreign exchange gains” driven by the appreciation of the renminbi will further attract global capital back to the Hong Kong stock market, propelling valuation recovery to new heights.