Morgan Stanley's China Hong Kong stock research expert Wang Yifang said that the high-quality assets in the Hong Kong stock market have already overcome the most difficult times. If there is continuous improvement in the company's profitability in the future, it is expected to attract a large amount of overseas long-term capital. Wang Yifang pointed out that the further catalyst for the Hong Kong stock market to move higher includes the interest rate cuts in the United States, changes in geopolitical risks, but the core is still the improvement in the company's profitability. If there is continued improvement in profitability combined with strong policy support, European and American long-term capital will eventually upgrade their allocation in Hong Kong stocks from underweight to at least equal weight. Currently, there are signs of stability in the Hong Kong stock market from a policy perspective, but the bottoming out process is not smooth sailing. It is normal to see a pullback after the recent uptrend. Morgan Stanley Asset Management is optimistic about the repair of core assets in Hong Kong stocks that are relatively cheap, such as internet technology, biopharmaceuticals, new energy vehicles, where they have a competitive advantage internationally, and they are also bullish on high dividend yield targets. They believe that if the adjustment of dividend taxes can be implemented in the future, it will be another important measure to enhance the liquidity of Hong Kong stocks. However, there is still uncertainty surrounding this policy at the moment.