Ba Ling Fang Weichang: Hong Kong stocks will maintain range volatility, mid-term dividends will have a positive impact on CN Mainland Banks

The earnings season for Hong Kong stocks is coming to an end. Fang Weichang, the chief investment officer of Balin Hong A Stock Investment, stated that the market is not paying much attention to the profit growth and net interest margin of CN Mainland Banks, mainly because there are no expectations. However, the stock prices of CN Mainland Banks remain stable, reflecting that funds are not too worried about the fundamentals. The funds are buying CN Mainland Banks not for growth, but for dividends, so mid-term dividends will become a positive factor for the sector. He predicts that the Hong Kong stock market will maintain a range-bound pattern. Fang Weichang pointed out that although the overall performance of Chinese stocks is mixed, there have been a large number of buybacks in the market, and funds are flowing back in, which helps stabilize the market. However, after the Third Plenum, policy news has been relatively quiet. With expectations of the U.S. starting to cut interest rates, the pressure of net outflows from Chinese stocks will ease. This will not only improve the sentiment in the Hong Kong A market but also create more room for China's monetary policy and benefit the implementation of fiscal policy. He believes that when selecting CN Mainland Banks at the moment, attention should be focused on real estate exposure and local government debt. The CN Mainland Banks invested by the fund under his management have a relatively large scale and diversified business, so a balanced allocation strategy will continue to be adopted. In addition, he revealed that he has recently increased holdings in pharmaceutical stocks, as the U.S. interest rate cut will benefit biotechnology stocks, especially those companies that are not yet profitable