The recent trend of the Hong Kong stock market has been affected by external uncertainties, with the index failing to show much improvement after falling below the 20,000 level. Kelvin Tan, Chief Investment Officer at iFAST Global Markets, expects that there may not be any major surprises at the central economic work conference in China next month. The stance of the Federal Reserve on interest rate cuts will be another key factor, and the index may see narrow fluctuations in the short term, with a chance of testing the 18,500 level. Therefore, the stock selection strategy will continue to focus on Chinese high-yield stocks, with telecommunications stocks being more stable, as the industry has not yet seen the introduction of 6G technology and capital expenditure is not high. In a situation of stable income, they can be a preferred choice. The Federal Reserve will hold its final interest rate meeting of the year in late December. Interest rate futures currently show a 59% probability of a 0.25% rate cut, and a 41% probability of skipping the rate cut, indicating uncertainty in the direction of interest rates. He believes that the Fed's stance on interest rate cuts will be a key factor, as a decision to skip a rate cut next month could weaken the Renminbi and create pressure on Hong Kong stocks. In addition, the number of rate cuts next year is also important, as if the federal funds rate remains at 4% by the end of next year, funds may continue to flow into the United States. Furthermore, local and international bank stocks such as HSBC (00005) and Bank of China Hong Kong (02388) are benefiting from the slower pace of interest rate cuts in the United States, which is favorable for their outlook.