On January 20, Hong Kong stocks were strong throughout the day, with the Hang Seng Index closing up 3.42%, the biggest one-day gain since July 2020; the Hang Seng Technology Index up 4.5%; and the Hang Seng China Enterprises Index up 3.79%. The net purchase of southbound funds was HK $6.544 billion, the 12th consecutive day of net purchases.

With the outbreak of technology stocks, Meituan rose more than 11%, Ming Yuan Cloud Group rose more than 10%, Tencent and Kuaishou Technology rose nearly 7%, and NetEase, Inc, JD.com, BABA and other science and technology leaders all strengthened.

Real estate, financial and consumer stocks are bright. In terms of real estate stocks, Country Garden Services Holdings led blue-chip gains by more than 15 per cent, Baolong Commerce and Sunac China rose more than 15 per cent, and Shimao Group and others rose a total of 16 property stocks by more than 10 per cent.

In the news, on the evening of January 19, the Central Internet Information Office issued a statement saying that it was false information that the Central Internet Information Office issued the Code of practice for the listing and Investment and financing of Internet Enterprises, and that the Central Internet Information Office had never issued this document. The relevant responsible person of the Central Internet Information Office said that the relevant rumor mongers will be strictly investigated in accordance with the law, and it is hoped that the vast number of enterprises and the public will not spread rumors, believe rumors or spread rumors.

In addition, both one-year and five-year LPR were downgraded. The results of the latest LPR quotation released on January 20th showed that the one-year LPR was 3.70%, down 10 basis points from the previous month, while varieties over five years old were reduced from 4.65% to 4.6%, which remained unchanged for 20 consecutive months.

The spring river is warm, and the investment atmosphere of Hong Kong stocks is rising again.

Looking back on 2021, it was a year of ups and downs for the Hong Kong stock market, with the share prices of major companies retreating to an all-time high, with the Hang Seng Technology Index falling by 32.7% in 2021. However, at the beginning of 2022, after more than a year of adjustment, the spring river was warm and the investment atmosphere of Hong Kong stocks rose again.

Hong Kong stocks with a deep correction in 2021 are being actively sought after by all kinds of funds: intensive repurchase by companies, a large proportion of ETF share growth in a number of Hong Kong stocks, and steady southward capital inflows.

According to Wind data, southbound funds continue to buy Hong Kong stocks in the new economy sector. As of January 18, southbound funds have bought a net HK $25 billion since the beginning of the year, and most of the top targets are star companies in the popular new economy industries.

In addition, according to statistics, since December, a total of 29 funds that can invest in Hong Kong stocks have been launched, and the ETF share of many Hong Kong stocks has increased by a large proportion.

As of January 19, head Internet companies such as Tencent, XIAOMI and other enterprises have been repurchased for many days in a row, superimposed large-scale dividend payouts and other measures to enhance market confidence. Many institutions believe that Hong Kong stocks are at the bottom, and the surge in buybacks heralds a phased bottom.

Hong Kong stocks have gone through a difficult time? Many organizations sing well.

Looking forward to 2022, a number of institutions believe that economic "steady growth" has been in a prominent position, a number of industry policy risks are expected to be cleared, and Hong Kong stocks already have strategic investment opportunities.

Zhang Yidong, chief global strategist at Societe Generale Securities, believes that Hong Kong stocks will have a "technical bull market" in 2022. Overseas funds and southward funds are the main driving forces.Hong Kong stocks have become the lowest depression in the world, and once the fundamentals are expected to improve, the willingness to allocate capital will increase.The multi-level capital market has become the core pool of China's huge social wealth, and the high-quality assets of Hong Kong stocks will be valued and repaired.

Founder Securities believes that some of the negative effects of Hong Kong stocks in 2021 have gradually landed or dissipated, and Hong Kong stocks have been fully consolidated.There is a high probability that there will be a rebound in 2022, which is from "do not use the hidden dragon" to the stage of "seeing the dragon in the field". The obvious adjustment time for Hong Kong stocks may occur in March-April 2022 and the third quarter of the second half of 2022.But the extent of the rebound in Hong Kong stocks may also be limited, and there may be a structural bull market rather than a trend bull market.

As for the general Internet stocks, Wu Yuefeng, a Beijing capital, saidJanuary is the first buying point for the Internet, because the underlying fundamentals may not get worse, including the decline is large enough, but for monopoly and regulatory policies, there may be some clearer directions after the two sessions. This is the first place to buy.The second buying point may be around March, and the third buying point is in June. I don't know which of the three buying points is the lowest, but the time point should be clear.

The most typical example of the Internet is the Matthew effect of the industry. as long as the policy does not ban the industry, the Matthew effect can hardly be reversed. First of all, for many years of anti-monopoly in the United States, Meta, Apple Inc, Alphabet Inc-CL C and so on have not lost their competitive advantage in the industry. The original intention of supervision now is to expect them to focus on the main business and not to extend it too much. The second is the business model and business structure of Internet companies, which are different in terms of economic and employment pull.This wave of mud and sand, and then some companies have the opportunity to correct expectations.

After a sharp adjustment last year, have Hong Kong stocks bottomed out?

Is the rise since the beginning of the month rebounding or reversed?

Analysts are optimistic about the future Hong Kong stock market. What do you think?

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