The trend of Technology is boosting the Hong Kong stock market, and Institutions expect the Hang Seng Index to rise to 25,000 points.
① In the current rebound of the Hong Kong stock market, what factors may drive Technology stocks to continue leading the rise and further boost the overall market? ② How should the phenomenon of continuous Outflow of active foreign capital be interpreted? Does this imply that long-term funds remain cautious towards the Hong Kong stock market or China Assets? ③ If there is an adjustment in the Hong Kong stock market, what risk factors should investors pay special attention to?
Christopher Hui: The Special Administrative Region government will increase the storage capacity for CSI Commodity Equity Index in Hong Kong and relax the asset assessment requirements for new investment immigrants.
The Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, stated during the annual meeting of the Asia Securities and Financial Markets Association that the Hong Kong government will promote the construction and development of world-class Gold warehousing facilities.
GF SEC: The characteristics of this round of Hong Kong stock market and pressure assessment.
The main reasons for the rise in Hong Kong stocks this round are, first, the correction from the decline at the end of the year (due to Exchange Rates depreciation and the resulting downward adjustment of profit forecasts in Hong Kong dollars), and second, the Technology theme that ignited market sentiment around the Chinese New Year.
What will be the next step for Hong Kong stocks? Morgan Stanley: The differentiation will continue, and foreign capital still has room for allocation increase.
Morgan Stanley stated that so far, southbound capital has made the largest contribution to this rebound, with foreign long-term investors still holding relatively low positions and there being room for increased allocation. After a long period of limited attention, Global investors are beginning to reassess China's investability in the fields of Technology and AI. In the short term, the divergent performance between AI/Technology stocks and non-AI/Technology stocks may continue.
Selected announcements｜HUA HONG SEMI's Q4 sales revenue increased by 18.4% year-on-year; AAC TECH's net income for 2024 is expected to increase by over 130%-145%.
In January, New China Life Insurance's original premium income increased by more than 30% year-on-year; CGN NEW ENERGY generated 1,527.6 gigawatt-hours in January, a decrease of 7.5% year-on-year.
CITIC SEC: The Hong Kong stock market may face profit-taking risks, but it does not change the reversal trend for the entire year.
Looking at the whole year, against the backdrop of the gradual recovery of the domestic economic fundamentals, combined with the cost-effectiveness of valuations, CITIC SEC remains bullish on the continuation of the reversal market for Hong Kong stocks since 2024.