Recently, KGI released its fourth quarter global market outlook. As of the end of September, the Hang Seng Index's blended 12-month P/E ratio was 9.6 times, just breaking through the negative 1 standard deviation of the past 10 years. The next resistance level is at 10.6 times, which is the early high of 2023. According to market forecasts for Hang Seng Index constituents, the blended 12-month earnings are 2200 yuan, corresponding to a Hang Seng Index of 23210 points. If the investment sentiment in the market does not weaken, and the implementation of national policies exceeds expectations, the valuation of the Hang Seng Index is expected to reach 11.5 times the P/E ratio, corresponding to an index of 25300 points. The bank also stated that the recommended strategy includes gold, utilities, investment grade bonds, defensive stocks, and the Asian region. The 6 selected Hong Kong stocks include Hong Kong Stock Exchange (00388), Ping An of China (02318), China State Construction International (03311), China Resources Industries (00669), China Mobile (00941), and Bank of China Aviation Leasing (02588). KGI also mentioned that from an economic fundamentals perspective, it is difficult to support the current increase in the Hong Kong stock market, mainly because the observation period for policy effects typically requires at least 6 months.