Xu Meng, Head of Administration at the Quantitative Investment Department of China Asset Management and a fund manager, stated that 2026 will be a year of valuation contraction coupled with earnings growth for Hong Kong stocks. The leading sectors can be categorized into two types: bottom reversals (where earnings growth turns from negative to positive or surges significantly) and sectors benefiting from strengthening industry trends or long-term fundamentals (where sustained high earnings growth is sufficient). Based on this logic, he is relatively more optimistic about the resilience of the Hong Kong stock market, noting that the medium- to long-term investment value of the technology sector is particularly prominent, and that short-term pullbacks provide investors with better allocation opportunities. (Securities Times)