Bob Xu, Executive Director and Chief Market Strategist for Morgan Asset Management in the Asia-Pacific region, said that European and American investors are still cautious about the mainland China and Hong Kong stock markets. However, some investors are paying attention to short-term strategic investment opportunities in the next 3 months. From the current valuation perspective, the investment environment in mainland China and Hong Kong is good. Xu believes that as long as the economic performance of mainland China and Hong Kong remains stable, and there are no major events in the real estate market, he is slightly optimistic about the performance of Hong Kong stocks in the next 3 to 6 months. However, in order for global investors to turn short-term operations on Hong Kong stocks into long-term strategic asset allocation, China needs to increase bright spots in its economy, improve corporate investment confidence, and continue high-level exchanges with the United States. Xu pointed out that recently, the best performing stocks are in high defensive industries and high dividend stocks, especially Chinese tech stocks. Since the mainland China economy is still in a consolidation period, everyone prefers defensive sectors. He suggests starting with high dividend stocks and traditional industries, and gradually increasing the allocation of technology stocks and other new economy stocks. Xu believes that in the next 5 to 10 years, the investor composition of Hong Kong stocks will become more balanced and diversified, not just dominated by Europe and America, but with funds from around the world, including the Middle East markets.