Hang Seng Index stands above 31,000 points for the first time since June 2018

Summary

The Hang Seng Index stood above 31,000 points, the first time since June 2018.

The Hang Seng Index rose in the afternoon and now stands above 31,000 points, the first time since June 2018.

Looking forward to the future, Geshang Fortune said that increasing the allocation of Hong Kong stocks is still a cost-effective option. In 2021, investing in Hong Kong stocks will be more cost-effective than A-shares and US stocks. From the perspective of profitability, as my country’s economy continues to improve, the profit growth rate of Hong Kong stocks will gradually recover. From the perspective of valuation, the current AH premium is at a historically high level and the price/performance ratio is high. From the perspective of future development, many leading Internet companies are currently listed on the Hong Kong stock market. High-tech companies will continue to optimize the structure of the Hong Kong market. The advantage of scarce targets in the Hong Kong stock market will continue to emerge. In addition, the degree of participation of southward funds in Hong Kong stocks is increasing. The southward capital can capture the excess returns brought about by discounts and push up the valuation of Hong Kong stocks.

Zhang Jintao, Managing Director of Harvest Fund, said that in 2021, Hong Kong stock investment opportunities are likely to be stronger than A shares. On the whole, Hong Kong stocks have four major advantages: low valuations, good long-term earnings, the possibility of loose liquidity in the medium and long term, and long-term optimization of the industry structure. Specific to the selection of industry sectors, Zhang Jintao believes that he is optimistic about the technology Internet, big consumption, medicine and financial services from a mid- to long-term perspective.

According to Morgan Stanley, the southbound funds of Hong Kong Stock Connect are estimated to further inflow US$90 billion (approximately HK$697.62 billion) in the rest of 2021, which means that the inflow of “North Water” into Hong Kong stocks may reach US$130 billion (approximately HK$1.08 trillion) this year. , The inflow is expected to be strong and sustainable. Under the most optimistic scenario, it is expected that mainland onshore mutual funds may purchase Hong Kong stock assets of US$90 billion this year.

The investment research team of Invesco Great Wall Fund issued a point of view that A-shares have recently experienced large fluctuations due to liquidity disturbances at higher valuations, but the economic upward trend in the medium and long term will not change, and they are optimistic about structural and bottom-up. Investment opportunities. At the same time, the current willingness to allocate southbound funds to Hong Kong stocks is still strong, the logic of optimism about the Hong Kong stocks still exists, and the long-term trend of the Hong Kong stock market remains optimistic. In terms of allocation, a balanced allocation can be made between the new and old economies. Some emerging targets unique to Hong Kong stocks may continue to be favored by southbound investors.

China Merchants Fund stated that from a mid- to long-term perspective, under the trend of “weak US dollar and stable RMB”, the advantages of high profit certainty and low valuation of Hong Kong stocks and Chinese stocks are obvious. Superimposing the current investment price ratio of Hong Kong stocks compared to A-shares is at a historically high level. Southbound capital is expected to continue to net inflow. In the long term, we are optimistic about Hong Kong stocks’ asset-scarce new economic sectors and the return of Chinese concept stocks to benefit sectors. As the global economy continues to resonate between the domestic supply side and the overseas demand side, the short-term allocation of Hong Kong stocks can follow the following ideas: First, the procyclical sector has better profit certainty, focusing on manufacturing investment restoration and focusing on advanced manufacturing The industry sector, as well as the gradual restoration of overseas supply-side opportunities in the subdivisions that drive domestic exports; second, the recent semiconductor equipment sales prices continue to rise, and the sector has a relatively high degree of prosperity; third, consumption data continues to pick up, and domestic offline consumption scenarios Gradually open, you can focus on the automobile, catering and other sectors.

(Source: Oriental Wealth Research Center)

(Editor in charge: DF142)

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