International Market: 

The U.S. market is experiencing a phase of volatile decline, with raising uncertainties due to three main factors: 

1.Tariff policies have heightened concerns about stagflation. 

2.Domestic political uncertainty is making future economic trends harder to predict. 

3.High valuations combined with short-term volatility have increased market risks. 

Nevertheless, we believe that leading AI companies—given their strong growth potential and reasonable valuations—still have limited downside risk. 

Domestic Market: 

In February, Chinese assets showed strong performance, with the Hang Seng Tech Index rising significantly. The primary catalyst was the launch of the DeepSeek large model. This model holds substantial significance for the Chinese market in two main ways: first, it enables the cost-effective development of high-quality AI models; second, its open-source nature allows various industries to deploy advanced AI solutions at a lower cost. We anticipate that AI large models will quickly become widely adopted across industries, positively impacting the financial performance of listed companies. With the world’s most diverse application scenarios—ranging from B2B production to B2C applications—Chinese companies are expected to lead in cost reduction and efficiency improvement while exploring new revenue streams. Given the current valuations of Hong Kong-listed stocks, Chinese assets remain highly attractive.