CITIC said in a research report that the reversal of liquidity and fundamental expectations has been the main driving force behind the continued rise in Hong Kong stocks since Friday. On the one hand, the daily number of new cases in the United States has once again exceeded 100000, and the uncertainty of future consumption and employment has led to the transformation of investors' trading from "inflation" to "stagnation", which is conducive to the stabilization and rebound of the RMB exchange rate. On the other hand, on May 17, Shanghai announced that it had achieved social zero, and under the expectation that economic momentum would gradually repair and superimpose measures to stabilize growth, the downward revision trend of Hong Kong stock market major index performance has also been reversed since the beginning of the year.

Taking into account the implementation of the adjustment of MSCI emerging market index stocks on June 1 and the current situation of overseas active funds with low allocation of RMB assets, after the potential external risks in early May have been digested and the trend of domestic epidemic prevention and control has improved, the Hong Kong stock market is expected to usher in a continuous increase in allocation by global investors. The bank maintains its judgment that it will be the best time point for additional allocation in the Hong Kong stock market since mid-May, suggesting that it should focus on three main lines: 1) consumption; 2) infrastructure, real estate, and 3) the Internet. The bank's Hong Kong equity portfolio for May is as follows:$Huazhu Group Limited-S (01179.HK) $、$Meituan-W (03690.HK) $、$China Rallway (00390.HK) $、$China Resources Land (01109.HK) $、$Baidu-SW (09888.HK) $、$01610.HK (Cofco) $ 、$Byd Company Limited (01211.HK) $、$Hong Kong Exchanges and Clearing (00388.HK) $、$Jinxin Reproduction (01951.HK) $、$Hua Hong Semiconductor (01347.HK) $。