[CITIC Securities: Hong Kong stock market recovery is expected to begin in 2027] On November 5, CITIC Securities released a 2027 Hong Kong stock market investment strategy research report stating that in 2026, Hong Kong stocks will be dragged down by weakening domestic demand for profits and pressure on liquidity, showing a double kill of "performance + valuation". Looking forward to 2027, Hong Kong stock earnings will grow moderately. The Hang Seng Index and Hang Seng Composite Index are expected to increase by 7.4% and 9.9% respectively. Hang Seng Technology will accelerate to 24.8%. The consumption and technology replacement cycle will become the main increase. Overseas interest rate hikes are expected to be fully priced. The Federal Reserve may restart interest rate cuts in the second half of the year, and the pressure on the discount rate will ease. However, the lifting of financing bans and the slowdown in southbound capital inflows will still make funds tight in the first half of 2027. The current dynamic PE of the Hang Seng Index and Hang Seng Technology is 9.67 and 13.1 times respectively, which are at historical lows. Policy support and interconnection reforms are expected to support recovery. In terms of configuration, it is recommended to take into account both growth and dividends: the growth direction is in the four major directions of biotechnology, AI applications, intelligent driving, and embodied intelligence; the dividends are supported by debt-like assets, taking into account dividend growth.