On May 20th, the Hang Seng Index opened 0.34% lower, while the Hang Seng Tech Index fell 0.35%. In terms of sector performance, the real estate sector showed strength. KE Holdings Inc. (02423) surged over 6%, and Sun Hung Kai Properties rose more than 2%. Technology and internet stocks weakened.

Regarding the outlook for the Hong Kong stock market, Huatai Securities believes that Hong Kong stocks still face two major external tests. On one hand, the impact of the oil supply shock is nearing a critical point of concentrated release. On the other hand, inflation expectations are pushing up global government bond yields, and monetary policy has limitations in responding to supply shocks. Internally, southbound capital positions still need to be cleared. The firm suggests confronting valuation and liquidity headwinds with certainty on the profit side, deploying along two main themes: certainty in cash flow and certainty in industrial trends.

Guotai Haitong Securities notes that risk factors such as rising short-term interest rates bring negative pricing disturbances, but the medium-term focus remains on the growth trend of the AI industry. The key to a breakthrough for Hong Kong stocks in the next stage lies in confirming a fundamental turning point. The Q1 financial reports from internet companies have solidified the narrative of a fundamental reversal. In terms of allocation, it is advised to value the defensive role of Hong Kong stock dividends, which have support from incremental funds in the medium term, can withstand downside risks from geopolitical disturbances in the short term, and benefit from institutional investors actively seeking rights.

China Securities (CSC) stated that brain-computer interface has been upgraded to an industrial strategy in the "15th Five-Year Plan." With strong support from multiple policies, industrial implementation is expected to accelerate, and investment opportunities should be noted. Brain-computer interface is part of both the medical and technology industries. In the short term, it is mainly applied in disease treatment. In the long term, if it can achieve human enhancement and integrate with AI and robotics (core stocks), it has the potential to unlock a trillion-yuan market. Non-invasive and invasive brain-computer interfaces are not inherently superior or inferior; the focus should be on identifying "true brain-computer interfaces" that have genuine demand and receive national policy support.