On May 8, the Hang Seng Index opened 1% lower, while the Hang Seng Tech Index fell 0.81%. In terms of sector performance, AI application and software stocks showed strength, with MEITU rising over 3% and Kingsoft gaining more than 1%. BIDU-SW advanced nearly 3% following news that Kunlun Core (Beijing) Technology Co., Ltd. has begun its listing guidance process.

Regarding the outlook for Hong Kong stocks, Huatai Securities believes that amid liquidity headwinds, greater attention should be paid to fundamentals. On the cash flow side, it is advisable to continue holding resource stocks with stable cash flows and manageable capital expenditure pressures, such as coal (core stocks), certain non-ferrous metals, as well as low-volatility dividend-paying stocks, including some Hong Kong local shares and state-owned banks. On the industrial front, the AI supply chain remains the direction with the highest medium-term visibility. Anchored by performance, it is recommended to focus on semiconductors (core stocks, such as memory), while investors with higher risk tolerance may moderately position in leading internet and power equipment companies.

Caitong Securities indicated that China’s commercial aerospace sector (core stocks) is still in its early stages, with market attention concentrated on relatively upstream segments like satellite and rocket manufacturing. However, the simultaneous cultivation of application areas such as satellite Internet of Things is expected to stimulate market vitality, enrich the supply of satellite communication markets, and establish a safety regulatory framework while forming replicable and scalable experiences and models. This will also support the safe and healthy development of emerging industries such as commercial aerospace and the low-altitude economy (core stocks).

CSC Financial noted that domestic travel enthusiasm remained strong during the May Day holiday, with tourism and sports event economies set to become important drivers of domestic demand and consumption throughout the year. Ongoing supportive policies will continue to benefit the service consumption and travel sectors.