Hong Hao, managing director and chief strategist of Bank of Communications International (03329.HK), said that the long-term layout is conducive to dealing with short-term fluctuations, and it is believed that COVID-19 's variant virus Omicron will not cause the economy to be worse than it was in March last year, but Hong Kong stock valuations are lower than at that time, reflecting market panic. He pointed out that public stocks have become growth stocks and are expected to show resilience when the stock market falls.

Hong Hao believes that from a fundamental point of view, the slowdown in US stock profits next year is inevitable, inflation may slow periodically in the second half of next year, there is a great chance of a correction in US stocks, and the risk of continuing to pursue US stocks is not commensurate with the rate of return. However, he thinks that there is little chance of a recession in the United States. 'The valuations of large scientific and Internet stocks in Hong Kong stocks already reflect regulatory risks, and the valuation level is even lower than that of some public stocks,'he said.

BoCom International expects that national real estate sales will decline by about 10% year-on-year next year. It is recommended to avoid investing in most mainland small and medium-sized real estate stocks in the short term. The current low valuation is an opportunity to absorb high-quality stocks. Country Garden Services Holdings (06098.HK) is the first choice, with a target price of 80.57 yuan and a "buy" rating. The bank points out that the "domestic goods boom" is weakening and sales of some international sports brands are returning to growth, benefiting its dealers in China, such as 06110.HK and 03813.HK, while 02020.HK and Li Ning Co. Ltd. 's profits will slow.

BoCom International pointed out that the quarterly decline in the non-performing loan ratio of mainland banks over the past four quarters will support the growth of BoCom's profits next year, and the online loan platform covered by the bank is expected to resume loan growth of about 26 per cent next year. The bank expects earnings of listed life insurers to grow by about 10 per cent year-on-year next year.

The bank pointed out that the rapid growth in demand this year has led to a shortage of polysilicon materials upstream and a sharp rise in the price of the entire photovoltaic industry chain. Photovoltaic installation is expected to slow by the end of this year, and will accelerate as the shortage of raw materials alleviates significantly next year.