March will become an essential node for Hong Kong stocks, paying attention to Internet technology, consumption, and the real estate chain

The rise of Hong Kong stocks last week was mainly catalyzed by positive domestic economic data. On March 1, 2023, the National Bureau of Statistics announced the PMI data for February 2023. The manufacturing PMI was 52.6%, the previous value was 50.1%, the non-manufacturing PMI was 56.3%, and the last value was 54.4%. This is mainly because the national epidemic has remained stable since February, production and life have fully resumed after the festival, and market demand has accelerated. The better-than-expected PMI data verified the strength of the economic recovery under the efforts of various policies in the early stage, which drove investor sentiment to pick up and supported the rise of Hong Kong stocks. This week, the Hang Seng Technology, Hang Seng China Enterprises Index, Hang Seng Composite Index, Hang Seng Index, and Hang Seng Hong Kong 35 Index rose and fell by 5.00%, 3.52%, 3.00%, 2.79%, and 2.12% respectively.

The mid-to-long-term recovery of the fundamentals has growth potential, and the Hong Kong stock market is worthy of active allocation. March will become an essential node for Hong Kong stocks. Important meetings at home and abroad and the release of economic data from January to February will be the market's first verification of the recovery process and future trends. Overseas, the Federal Reserve and the European Central Bank will hold interest rate meetings in March. After the PCE heats up, the Fed's interest rate hike resolution and policy statement will become essential for the market to judge future interest rate hikes' pace and endpoints.

1) Benefit from the economic stability and recovery of the Internet technology industry with high resilience.

2) Food and beverage, hotel catering, and gaming stocks benefiting from the post-epidemic consumption recovery.

3) Real estate-related industries such as building materials, real estate, and architectural decoration benefit from the continuous development of fundamental estate-related policies.