According to the CITIC Securities Research Report, the Hang Seng Technology Index closed up 5.5% on November 5, the biggest one-day increase since the end of February 2025. CITIC Securities believes that the decline in interest rates on US bonds is compounded by the return of capital, and the Hong Kong stock Internet is expected to usher in a new round of market recovery. The expected rise in US bond interest rates after the midterm elections is a relatively slow variable, and the global liquidity spillover is expected to bring about continued capital recovery. On the valuation side, Hang Seng Technology's NTM PE is 17.6x, at 16.2% in the past 5 years, and Hengke, which is sensitive to interest rates and has a low valuation, is expected to be the first to benefit; on the capital side, the allocation of foreign capital and domestic capital to the Internet is still low, and the net inflow of foreign capital in October has already exceeded the total of the previous three quarters, and recovery is taking place; on the performance side, the non-GAAP net profit growth rate of leading Internet companies bottomed out at 26Q2. Q3/Q4 is expected to increase 8%/37% year-on-year. The decline in interest rates has opened up valuation space, provided incremental capital reimbursement, and consolidated the foundation for performance implementation. Combined with the continued commercialization of AI in China, CITIC Securities continues to firmly view Hong Kong stocks on the Internet.

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