CITIC Securities: Disruptions in Hong Kong stocks are easing; short-selling positioning is expected to converge. In the short term, recommended areas include innovative drugs, aviation, robots, and industrial metals.

Mars Finance news: A recent report from CITIC Securities notes that although the ratio of outstanding short selling in Hong Kong stocks to market value has slightly fallen from the early-June peak to 2.43%, it remains near levels about three times the standard deviation above the historical average. With internal and external disturbance factors gradually easing, it is expected that there will be substantial room for further decline. However, there are also fairly clear pair trading signs in the Hong Kong stock market recently, so in the near term we still recommend focusing on sectors with higher certainty in fundamentals and those with event catalysts, including: innovative drugs, airlines, robots, and metals with strong industrial attributes. (China Finance Network)
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