Looking back at the first half of this year, Hong Kong stocks got off to a strong start, but they came under pressure again. After leading the world's major stock markets at the beginning of the year, the overseas Chinese stock market fell sharply in March. In mid-March, the Hang Seng Index fell below the 18500 mark, retreating more than 27% from the year's high. Growth stocks fluctuated more violently in the downward trend, with the Hang Seng Composite Index retreating as much as 41.53% during the year.

Since then, the Hang Seng Index has fluctuated higher all the way. As of June 8, the Hang Seng Index had rebounded nearly 3600 points, down 5.91 per cent for the year. The Hang Seng Composite Index rebounded nearly 1355 points and fell 15.03 per cent during the year.

Below, this article will make a brief review of the specific performance of various sectors of Hong Kong stocks in the first half of this year.

I. the energy sector has enjoyed a gratifying rise, with a cumulative increase of more than 49% during the year.

On the list of plate ups and downs, the energy sector performed well, ranking first in terms of growth. As of June 8, the energy sector rose 49.01% for the year. The telecommunications service sector also performed well, rising more than 10% during the year, while industrial, financial, materials and other sectors all rose.

As of June 8, the health care sector fell the most, falling 21.07% during the year, while the optional consumer sector fell more than 11%.

2022 may be the "highlight year" of the energy sector, with domestic and foreign energy sectors rushing all the way and rising continuously under the blessing of rising commodity prices, soaring oil and gas prices and other factors.

Many energy stocks in the Hong Kong stock market have also performed very well. As of June 8, Yanzhou Coal Australia has surged nearly 130% this year, while Yanzhou Mining Energy and United Energy Group are both up more than 85%.

Second, optional consumption and information technology sectors are the hottest, accounting for more than half of the turnover.

In terms of plate turnover, optional consumption and information technology can be said to be investors'"favorite sectors", accounting for half of the total trading volume of Hong Kong stocks.

As of June 8, the turnover of the optional consumer sector reached HK $2.94 trillion, while the turnover of the information technology sector also exceeded HK $2.32 trillion, accounting for 26.93% and 225.5% of the total trading volume of Hong Kong stocks, respectively.

How on earth will Hong Kong stocks go in the second half of 2022?

The second half of 2022 has gradually begun, and then the Hong Kong stock market will stand firm and good? Where will the Hong Kong stock market go? Here are some of the views of the organization.

• Puyin International: for the Chinese stock market, Hong Kong stocks are more cost-effective than A shares.

Puyin International said it was worth increasing its holdings of Chinese stocks in both Chinese and overseas markets from an absolute and relative point of view. For the Chinese stock market, Hong Kong stocks are more cost-effective than A-shares.

• Citic Construction Investment Co., Ltd.: Citic Hong Kong stocks are back on the Internet, when the willows are dark and the flowers are bright.

Citic Construction Investment said that in the first half of 2022, the Internet of Hong Kong stocks had a dark moment. Standing at the current time, many factors that suppress the Internet are improving marginally. Overseas, the risk of delisting of Chinese stocks has eased, the return is still the general trend, and the pace of the Fed's rate hike is expected to slow significantly in the fourth quarter. On the domestic side, the policy bottom has been clear, and the bottom of the second quarter results is just around the corner. In the future, domestic policy regulation will tend to be normal, and new model breakthroughs and technological breakthroughs will dominate the new growth of the Internet industry in the next stage.

• CICC:The downside of the Hong Kong stock market may be relatively limited.Looking for certainty from stable cash flow

CICC said in a research report that the overseas Chinese stock market continues to show relative resilience. Given already low valuations, continued southbound capital inflows and continued domestic policy support measures, the downside of the Hong Kong stock market may be relatively limited.

On configuration recommendations, look for certainty from cash flow:Focus on high dividends, high quality growth and steady growth. CICC believes that looking for certainty from a stable cash flow is a better allocation idea. Specifically, on the one hand, in an environment where there may still be room for downside in China's risk-free interest rates and liquidity remains loose, high dividend yields (banks, energy and utilities) provide stable dividend returns and defense. On the other hand, under the background of the improvement of the economic supervision margin of the Internet platform and the continuous efforts to promote stable consumption growth policies, high-quality growth stocks with sufficient valuation correction and still good growth prospects (such as automobiles, medical services, some consumer goods services and the Internet) may provide better operational cash flow certainty.

• Jianyin International: the overall trend of Hong Kong stocks is expected to be bright. August-September will be an important observation window.

CCB International believes that in the first half of the year, Hong Kong stocks confirmed the valuation floor (3.15), the policy floor (3.16 Gold Stability and subsequent stable growth and stable expectations meetings) and the economic bottom (at the end of April and the beginning of May), and the second half of the year may usher in a bottom of profit (before and after the China report). Hong Kong stocks are expected to be bright in the second half of the year, and the fluctuation center will gradually rise. August-September will be an important observation window, US monetary policy will reach an important crossroads, and the July-August reporting season market will also test and confirm the bottom of Hong Kong stock earnings.

The bank expects Hong Kong stocks to generally fluctuate upward in the second half of 2022 and proposes to shift from overweight value to a balanced allocation between value stocks and growth stocks, taking into account the possibility of another style switch in the second half of the year.

• Open source securities: Hong Kong stocks bottomed out in the second quarter, and it will be sunny in the second half of the year

Open source securities overseas market team believes that the bottom in the second quarter, the layout rebounded in the second half of the year. Compared with the performance of the global mainstream stock markets and historical Hong Kong stocks, the current valuation level of Hong Kong stocks is low and already has medium-and long-term allocation value, but the low valuation is not enough to constitute a reversal reason.

Open source securities overseas market team believes that earnings growth is the core driving force of the long-term rise of Hong Kong stocks, but there are also adverse factors such as RMB depreciation. More complex factors will affect the phased performance of Hong Kong stocks, such asRisk-free interest rate factor：The basic reaction to the expected increase in interest rates is that the shrinking table pushes up real interest rates.LiquidityRisk premium factors:There is still a net inflow of funds from Hong Kong stocks, and foreign capital has not yet returned obviously. the return of foreign capital still needs to see that the fundamental trend of Hong Kong stocks is better than that of European and American economies; the impact of the contraction of overseas liquidity brought about by the Fed's shrinking schedule; the potential impact of the delisting of Chinese stocks on the liquidity of Hong Kong stocks still needs continuous attention.