[Add positions in pharmaceuticals and reduce positions in technology hardware; institutions actively explore structural opportunities in Hong Kong stocks] On November 4, with the disclosure of the third quarterly report of public funds, their allocation changes in Hong Kong stocks have attracted much attention. Overall, as of the end of the third quarter, Hong Kong stock positions of active equity-biased public funds were still underweight relative to the benchmark. From an industry perspective, it concentrated on increasing positions in sectors such as pharmaceuticals and biology in the third quarter, and reduced its positions in technology hardware such as semiconductors. As for the future trend of Hong Kong stocks, in addition to the continued high interest rate environment overseas, the results of the U.S. midterm elections may become a new variable that disturbs the future trend of Hong Kong stocks. Industry insiders believe that in the short term, we should adhere to the idea of ​​​​defending first and waiting for performance to break. Low-volatility dividend assets continue to be favored. The technology sector recommends focusing on companies with clear industry trends, profits, abundant free cash flow, and AI investments that have generated actual commercial returns. (China Securities Journal)