The Hong Kong stock market commentary: Affected by unstable geopolitical situations and concerns over high inflation, the Hong Kong stock market has remained relatively weak recently, showing a pattern of 'lower peak after lower peak.' Especially under the pressure from multiple daily moving averages above, unless significant positive news emerges to reverse the situation, the market is unlikely to see a clear breakthrough. From a technical perspective, the overall downward channel formed since the adjustment from the high of 26,187 points has not fundamentally changed. Currently, the upper resistance of this downward channel is approximately in the range of 24,600 to 24,800 points. If the Hang Seng Index fails to effectively break through and stabilize above this range in the coming period, the current market rebound is expected to remain primarily short-term in nature. During this overlapping period of market rebound and attempts at breakout, it is particularly important to identify fundamentally supported stocks with catalysts that offer a 'defensive counterattack' opportunity. The author believes that currently, the energy sector, especially oil and coal stocks, offers relatively high allocation value. From an international macro perspective, oil price movements are closely tied to geopolitical developments. With the U.S. midterm elections approaching, geopolitical tensions are once again simmering beneath the surface. Earlier, former U.S. President Trump suggested that there might be another military action against Iran after the midterm elections. Under such sentiment, the likelihood of a significant oil price decline before the midterm elections is low, and oil prices are expected to remain volatile at elevated levels. This provides short-term profit protection for upstream exploration and production oil stocks. Traditional oil and gas giants such as CNOOC (00883) and PetroChina (00857) are likely to maintain a relatively strong performance. Meanwhile, mainland coal prices have recently continued to strengthen, mainly due to the approaching seasonal peak demand season and production limitations caused by safety inspections and environmental policies in certain producing regions. The persistently tight supply-demand relationship continues to push thermal coal and coking coal prices high. After industry optimization over the past few years, coal enterprises have significantly improved their balance sheets and are currently in a peak period of profit realization. The continued strength in coal prices will directly boost the fourth-quarter earnings of related listed companies. Under conditions of high demand for power and industrial coal, solid-fundamental, generously dividend-paying coal leaders such as China Shenhua (01088) also deserve investors' close attention. (Product Development and Retail Research Department, Everbright Securities International) Investing involves risks, and each investor's risk tolerance varies; independent thinking is essential. The author may trade based on market conditions. *Articles published in Economic Daily with or without bylines reflect the authors' personal opinions and do not represent the stance of Economic Daily. Economic Daily's role is to provide a free speech platform.