Zhao Yingyan, a senior investment strategist at Oriental Wisdom Wealth Management Market and Investment Strategy Department, pointed out that the expected performance of Hong Kong stocks in August is likely to improve or outperform the regional market. Although concerns about the external environment still exist, the key lies in the performance of Hong Kong stocks. She expects that the performance of Hong Kong stocks may not be as bad as expected. Based on the MSCI China Index, she predicts that there will be more companies with positive earnings surprises than earnings warnings. At the same time, she expects the performance of Chinese tech stocks to be decent. China's largest tech and e-commerce platforms may drive revenue growth in the second quarter, which will boost the earnings outlook of the MSCI China Index. Due to their significant weighting in the MSCI China Index, the overall earnings growth of the MSCI China Index may improve. However, Zhao Yingyan warned that the current uncertainty brought by the US presidential election may lead to trade restrictions or trigger global fund sell-offs after the official announcement of the presidential candidate. This may not only affect Hong Kong stocks, but other markets as well. However, she does not believe that it is necessary to increase defensive stock deployment at the moment. She prefers downstream oil stocks, some tech stocks, domestic banks, and telecom stocks.