2022 marks the end of three years of state-owned enterprise reform, and Societe Generale Securities recently said that it is optimistic about the allocation of high-quality Hong Kong stocks of central enterprises this year. The agency pointed out that the low valuation of central enterprises in Hong Kong stocks and standard corporate governance are ushering in new opportunities for revaluation.

The following picture shows some Hong Kong stock central enterprises and related subsidiaries in line with the current strategy proposed industry direction, for reference, not recommended as individual stocks.

Societe Generale Securities said that the revaluation of central enterprises is not because it is cheap or labeled by central enterprises, but because of changes based on fundamentals.

In the medium to long term, with the implementation of the "double carbon" strategy, high-quality development and common prosperity, the fundamentals of some central enterprises in Hong Kong are ushering in opportunities for turnaround or transformation. These include:

1) low-carbon and environmentally friendly new energy:Power operators with iterative technology and high prosperity; Fengguang, nuclear hydrogen and other new energy related industrial chains; new energy infrastructure construction leaders with obvious advantages in the whole industry chain

2) TMT related to "Alliance of everything":Central telecom operators whose profit margins are expected to be improved.

3) high-quality central enterprises of Hong Kong stocks in the field of advanced manufacturing.

In the short and medium term, China's economy will be "stable" in 2022. China's economy is expected to stabilize and recover. Both A-shares and Hong Kong stocks will benefit from investment opportunities. These include:

1) the improvement of the industry boom brings about a revaluation.China's monetary and credit environment will be looser than that in 2021, and the pro-active fiscal policy will also work in structural and deterministic areas, optimistic about the average return of agriculture, construction, building materials, securities firms, aviation, environmental protection, telecom operators and other industries.

2) Strategic bullish industries have short-term "falling opportunities" to increase their holdings on bargains.Green electricity, new energy, new infrastructureThe direction in which these long-term strategic opportunities can be combined with short-term steady growth.

3)Real estate, finance and other "bond" assets of central enterprisesIt is expected to fall deeply and rebound, and the "true value stocks" with improved fundamentals usher in a good opportunity for medium-and long-term allocation.