$Hang Seng Index (800000.HK)$ Financial｜Schroeder Investment...

$Hang Seng Index(800000.HK)$ Financial｜Schroeder Investments: Initial Stock Valuation in Hong Kong Stock Market Is Underlying Early Recovery

IT'S TIME TO REFOCUS ON ASIA, SAYS SHE KANG, DIRECTOR OF DIVERSIFIED ASSET INVESTMENT AT SCHRODD.

From a macro perspective, he noted, overall Asian economic growth remains ahead of the United States and European countries. Although Chinese economic growth is expected to slow, the general consensus in financial markets is that China's economic growth is expected to reach 5% in 2024, with Indian economic growth estimated at more than 6%. Asia will continue to contribute to global economic growth, compared with 2.7% growth forecast for the US economy.

A global manufacturing recovery is one of the key drivers of Asian economic growth. As export-driven economies, most Asian countries or regions will benefit from this year's cyclical recovery in manufacturing, particularly the continued export recovery brought on by increased demand for semiconductors, which will support Asian economic growth.

In the Mainland and Hong Kong markets, the Chinese and Hong Kong stock markets are at the beginning of a recovery phase, stock valuations have bottomed out, and foreign investment is showing signs of buying again, sending the market on a wave of gains. However, the stock market remains bullish for the long term and believes that the authorities need to introduce more easing and supportive policies. At this stage, we have a neutral view of the stock market in Hong Kong and look forward to the announcement of further easing policies at the 23rd Plenary Session of the CCP in July this year in Beijing.