Luo Zhiheng, chief economist of Guangdong Development Securities, released a research report saying that for Chinese assets, the US midterm elections may boost global risk appetite in the short term, which in turn is relatively beneficial to the recovery of the Chinese stock market. On November 4, along with the clear results of the US midterm elections, A-shares and Hong Kong stocks both strengthened. The Shanghai Composite Index and the Science and Technology Innovation 50 Index closed up 2.16% and 9.92% respectively. The semiconductor sector led the way, with the turnover of the two markets returning to more than 2 trillion yuan; the Hang Seng Index and Hang Seng Technology Index closed up 1.67% and 1.77% respectively. In the medium to long term, the core pricing logic of China's capital market has always been the fundamentals of the domestic economy, the pace of industrial upgrading, and the strength of macroeconomic policies. Risk points such as the expiration of the future tariff truce and legislation on technology restrictions may gradually suppress the risk appetite of the export chain and the technology sector. However, changes and restrictions in the external environment will neither change the long-term trend of China's economic transformation and upgrading, nor will they change the long-term investment value of high-quality enterprises. Investors should also focus on core variables such as the implementation of steady domestic growth policies, the pace of domestic demand restoration, and progress in independent scientific and technological innovation, and rationally view short-term fluctuations brought about by external events.

Luo Zhiheng, chief economist of Guangdong Development Securities, released a research report saying that for Chinese assets, the US midterm elections may boost global risk appetite in the short term, which in turn is relatively beneficial to the recovery of the Chinese stock market. On November 4, along with the clear results of the US midterm elections, A-shares and Hong Kong stocks both strengthened. The Shanghai Composite Index and the Science and Technology Innovation 50 Index closed up 2.16% and 9.92% respectively. The semiconductor sector led the way, with the turnover of the two markets returning to more than 2 trillion yuan; the Hang Seng Index and Hang Seng Technology Index closed up 1.67% and 1.77% respectively. In the medium to long term, the core pricing logic of China's capital market has always been the fundamentals of the domestic economy, the pace of industrial upgrading, and the strength of macroeconomic policies. Risk points such as the expiration of the future tariff truce and legislation on technology restrictions may gradually suppress the risk appetite of the export chain and the technology sector. However, changes and restrictions in the external environment will neither change the long-term trend of China's economic transformation and upgrading, nor will they change the long-term investment value of high-quality enterprises. Investors should also focus on core variables such as the implementation of steady domestic growth policies, the pace of domestic demand restoration, and progress in independent scientific and technological innovation, and rationally view short-term fluctuations brought about by external events.