In a report, Zhou Hanhong, director of the Asia-Pacific sales department of the listed products department of BNP Paribas, stated that he expects the total turnover and proportion of turnover of warrants in Hong Kong to increase slightly this year. The turnover is expected to exceed 3 trillion yuan, accounting for 11% to 12% of the total market turnover. Last year, the total turnover of warrants in Hong Kong was about 2.84 trillion yuan, a year-on-year decrease of 26.2%, accounting for 11.2% of the total market turnover, down from 12.6% the previous year, hitting a new low since the introduction of warrants in Hong Kong in 2006. Zhou Hanhong expects that the volatility of warrants will first decrease and then increase, and recommends focusing on warrants after focusing on bull and bear markets. The market is waiting for a chance for the valuation of the Hang Seng Index to recover, but he believes that the current round of rebound of the Hang Seng Index will take a longer time due to the slow pace of the market decline and the lack of catalysts for a major policy shift. He predicts that there will be no significant volatility in the first quarter of this year, making it easier to control risks by deploying the Hang Seng Index in the medium term. He also said that the volatility of ATMX warrants has been on a downward trend in the past year, and it is not recommended to deploy related warrants at the beginning of this year. BNP Paribas recommends focusing on stable high dividend payouts, hardware technology, and green resource sectors in the first half of the year, suggesting to focus on China Mobile (00941), HSBC Holdings (00005), CNOOC (00883), Link REIT (00823), Xiaomi (01810), Lenovo (00992), AAC Technologies (02018), China Longyuan Power (00916), and LONGi Green Energy Technology (03800). Cai Xiuhong, director of the listed products sales department of BNP Paribas Securities, mentioned that although the proportion of warrants hit a new low in 2006, they still received capital inflows, with the market being cautious and focusing on short-term deployments of capital. With the stock market starting to decline this year, she pointed out that BNP Paribas will continuously issue diversified products according to market conditions. In regards to the US market, Zhou Hanhong stated that the P/E ratio of the S&P 500 is close to historically high levels, indicating a clear demand for hedging in the market. Last year, investors also showed an increasing interest in products related to the S&P 500.