Baling Fang Weichang: It is difficult to say that the Hong Kong stock market has turned around. It is expected that the stock market will still be volatile in May and June
Recently, the Hong Kong stock market has rebounded, breaking through the 18,000 point mark, but it is still uncertain whether a trend reversal has occurred. The rebound in the Hong Kong stock market may be due to other markets starting to weaken, with funds seeking safe havens. The low valuation of the Chinese market has attracted interest in Chinese stocks. It is expected that there will be significant volatility in the stock market in May and June, and it is necessary to pay attention to the international capital flows after other stock markets have completed their adjustments. Foreign investors are paying more attention to the performance of the Chinese real estate and retail sectors. Investors can maintain their holdings in Chinese technology stocks and are optimistic about energy stocks
According to the VETT Financial News APP, the Hong Kong stock market has recently regained momentum, with the Hang Seng Index breaking through the 18,000 mark. When asked whether the Hong Kong stock market has reversed its trend, Fang Weichang, the Chief Investment Officer of Balin Stock Investment, believes that it is still too early to say. With the quietness of the mainland news, the rebound in the Hong Kong stock market may be due to other markets starting to weaken after hitting new highs, as funds seek safe havens. The Federal Reserve also has no plans to raise interest rates again, indicating that interest rates have peaked. Additionally, the low valuations in the Chinese market have reignited interest in Chinese stocks.
Although there are not significant catalysts in China, Fang Weichang pointed out that many companies in this Hong Kong earnings season have increased dividends and buybacks, which is a positive factor. Furthermore, as long as Sino-US relations and geopolitical tensions ease, it will have a positive impact on the stock market. However, it is difficult to say whether the upward trend in the Hong Kong stock market can be sustained.
Fang Weichang mentioned that the Hong Kong stock market is still significantly lagging behind. After the market hits bottom, valuation will definitely lead earnings, but this process will be volatile. He expects significant volatility in May and June, and will continue to observe the movements of international funds after other stock markets have adjusted. Foreign funds will pay relatively more attention to the performance of mainland real estate and retail sectors. Currently, there is hope for a significant recovery in the Chinese economy and earnings, while externally, the focus is on US inflation. If it falls further, there will be more reasons for the Hong Kong stock market to rise.
In terms of investment, Fang Weichang maintains a hold on Chinese and special valuations, mainly considering that dividends after earnings have not decreased, reaching levels of 8 to 9%, and remains optimistic about energy stocks. Amid geopolitical disturbances, he expects that there is not much room for a significant decline in oil prices. However, he mentioned that if these high-yield stocks only have interest rates without upward momentum, he will consider adjusting the allocation slightly to lock in profits