The Hang Seng Index opened 0.58% higher, while the Hang Seng Tech Index rose 0.86%. In the market, the semiconductor sector performed strongly, with Huahong Semiconductor and SMIC rising nearly 2%; AI application stocks weakened.
Regarding the future outlook for Hong Kong stocks
Galaxy Securities stated that the Hong Kong-listed technology sector remains a long-term investment focus. After recent corrections, valuation pressures have eased. Against the backdrop of accelerated updates in AI large models and rapid progress in applications, the sector is expected to rebound. Meanwhile, rising geopolitical risks in the Middle East and adjustments to U.S. tariff policies have increased risk aversion, providing potential for volatility and upward movement in precious metals and energy sectors. The consumer sector currently trades at low valuations, and as pro-consumption policies are intensified, consumer vitality is gradually being released, offering further upside potential for the sector.
Huatai Securities noted that the short-term divergence in the AI-driven main trend in U.S. equities has a neutral impact on risk appetite in Hong Kong stocks. New developments have emerged in domestic high-frequency consumption data and AI models. In the short term, it is recommended to focus on three key areas: first, semiconductor hardware such as storage; second, niche consumption segments showing improved momentum, such as catering and innovative pharmaceuticals; and third, electrical equipment benefiting from internal and external power system upgrades.
CICC pointed out that the correction in Hong Kong stocks stems from the ‘triple pressure’ of hawkish expectations from the Federal Reserve, doubts about returns on AI capital expenditures, and weak manufacturing PMI. While there may be short-term overshooting, there is room for upward correction. However, the medium-term index outlook is limited, with opportunities lying in sectors with strong fundamentals, such as essential retail and technology hardware.
CICC pointed out that the correction in Hong Kong stocks stems from the ‘triple pressure’ of hawkish expectations from the Federal Reserve, doubts about returns on AI capital expenditures, and weak manufacturing PMI. While there may be short-term overshooting, there is room for upward correction. However, the medium-term index outlook is limited, with opportunities lying in sectors with strong fundamentals, such as essential retail and technology hardware.
This article is reprinted from ‘Tencent Self-Select Stocks,’ edited by Feng Qiuyi from Zhitong Finance.
