Jinwu Financial News | Guoyuan International believes that the recent performance of Hong Kong stocks is under internal and external pressure. On the one hand, market performance is facing pressure that fundamental data falls short of expectations and declining capital risk appetite. However, on the other hand, policy combinations and accelerated issuance of special bonds are expected to drive a moderate recovery of the economy. Therefore, Hong Kong stocks are currently in a volatile pattern, and it is difficult to break out of the volatile market in the short term. We can focus on structural sectors with comparative advantages such as high dividends, policy support, and Internet leaders. In the US stock market, the price-earnings ratio and market capitalization level have reached historic highs, and the market is worried that future performance growth will not support current valuations. Once the growth rate slows down, the performance pressure on the secondary market declines greatly. Looking forward to the future, against the backdrop of global economic recovery and falling financing costs, the global economic growth rate will remain stable in the fourth quarter, demand for Internet IT services will also be maintained, and there is a high probability that performance expectations will be met. Therefore, the equity market will likely be dominated by shocks and fluctuations in the near future.
The bank suggests focusing on Reading Group (00772), Chizicheng Technology (09911), Tencent (00268), and Kingdee International (00268). US stocks suggest focusing on AI and consumer recovery related targets, including Google (GOOGL.US), Microsoft (MSFT.US), Amazon (AMZN.US), BKNG.US (BKNG.US), Spotify (SPOT.US), and Amazon (AMZN.US).
