Daily Investment Strategy
Recommended Stock：CSOP A50 ETF（2822）
Following recent central government stimulus efforts, the manufacturing PMI came in at 50.1, slightly above the market forecast of 49.9 and last month’ s 49.8. Although the earnings of mainland companies in the third quarter may continue to be affected by the sluggish mainland economy, we believe that if the recent policies are successfully implemented, the market will continue to look forward to the potential improvement of returns. The NPC Standing Committee’ s twelfth meeting is held in November 4-8, with markets watching for further policy developments. If investors want to grasp the potential uptrend of each sector at the same time, CSOP A50 ETF can be considered. Target price: $16; Stop- Loss price: $12.3.
ISM Services PMI in United States higher than expected
The U.S. ISM services PMI in October was 56, higher than the previous value of 54.9. The predicted value is 53.8. Meanwhile, investors are awaiting the Federal Reserve's November interest rate decision, scheduled to be released on Thursday, as well as Fed Chairman Jerome Powell's latest comments on future policy moves. Traders see a roughly 98% chance of a 25-basis-point rate cut following September's 50-basis-point rate cut, according to CME Group's FedWatch Tool.
Hong Kong Stock Connect had a net inflow of HK9.42bn on Tuesday of which Tracker Fund(2800) had the largest net inflow, reaching HK$2.0bn; followed by Tencent (700). SMIC (981) recorded the largest net outflow at HK$1.0bn, followed by Li Auto(2015).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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