The research report highlights that the present Hong Kong stock market presents remarkable cost-effectiveness, particularly with certain leading technology stocks being undervalued. Propelled by the technology cycle, these stocks harbor significant potential for upward movement. A mere valuation adjustment in these premier technology stocks could propel the Hang Seng Tech Index upward by 15%. Should the overall index valuation align with its historical average, the surge would surpass 30%.

Given the improving fundamental expectations and the steady enhancement of the capital environment, it is projected that undervalued Hong Kong stocks could attain new peaks in the fourth quarter. The technology trend, spearheaded by the AI cycle, is expected to be the primary catalyst for this growth. At present, the overall valuation of Hong Kong stocks remains relatively low, with the Hang Seng Tech Index offering even more attractive cost-effectiveness.

Looking forward to the fourth quarter, the 'AI empowerment' within the internet sector, coupled with policy support, is anticipated to drive a rebound in fundamental expectations. Simultaneously, inflows of foreign capital and southbound capital are expected to fortify the capital market. From a structural perspective, technology will persist as the central theme, while dividend assets, new consumption assets, and innovative pharmaceutical assets in the Hong Kong stock market also warrant attention.