The Hong Kong stock market showed a pattern of "four rises and one fall" last week, with indices still outperforming overseas markets. Hong Kong stocks continued their upward trend at the beginning of the week. As of press time, the Hang Seng Technology Index was up more than 5%, and the Hang Seng Index was up nearly 3%. In terms of individual stocks, BYD Electronic rose by more than 16%, XIAOMI Group by more than 9%, JD.com and Meituan by more than 5%, and Tencent by more than 3%.

In terms of the plate, the catering sector led the rise in the Hong Kong stock market, with Jiayu, 99 Mao and Haidilao International Holding leading the gains in catering stocks. On the news side, the move to liberalize the dining room in Shanghai in an orderly manner has been good.

The non-ferrous metals plate strengthened, with Ganfeng Lithium up more than 10%, China Molybdenum up more than 6%, Jiangxi Copper and Aluminum Corporation Of China Ltd up nearly 6%.

Gambling stocks rose collectively, with Melco International up nearly 7 per cent, Sands China up more than 6 per cent, Wynn Macau and SJM Holdings up more than 5 per cent, MGM China and Galaxy Entertainment up more than 4 per cent.

Wind statistics show that southbound capital has flowed a total of HK $190.572 billion into Hong Kong stocks so far this year.From the perspective of industry choice, the investment preference of institutions has changed: information technology and optional consumption are still favored, but there are great differences on health care, and new energy has become the new favorite. Incremental capital intervention, high growth and overall low valuation constitute the current investment advantages of Hong Kong stocks.

Guoxin Securities saidThe inflow of funds from Hong Kong stocks since June continues the strong performance of May, and the overall level has a significant advantage compared with the same period in 2018; in terms of increment, the inflow of funds in June is the best of the year.

In addition, CITIC reported that due to the conflict between Russia and Ukraine, overseas monetary tightening and other effects, the Hang Seng Index has fallen 26% since the beginning of the year. However, with the domestic local epidemic control, stable growth policy increased, investor confidence picked up, the second half of the fundamentals bottomed out rebound trend has emerged.

Are Hong Kong stocks coming back?

Singing a lot, institutions are talking about the market of Hong Kong stocks in the second half of the year.

Driven by the orderly resumption of work and production in many places, the A-share and Hong Kong stock markets have rebounded, the voice of foreign investors singing more and more China is getting stronger, and a number of institutions also released their prospects for Hong Kong stocks in the second half of the year last week.

For the Hong Kong stock market in the second half of the year, some institutions believe that after the future loose policy is verified, the earnings of Hang Seng Technology Index constituent stocks are expected to be more optimistic and are expected to lead the Hong Kong stock index to strengthen. However, some institutions believe that due to the Fed's interest rate hikes, repeated epidemics and other factors, Hong Kong stocks will still experience a shock bottom in the second half of the year.

From the point of view of most institutions, the opportunities faced by the Hong Kong stock market as a whole still outweigh the risks, and the market will continue to "change from cold to warm" in the medium to long term.

In terms of allocation ideas, Zhang Yidong, chief global strategist at Societe Generale Securities, believes thatThe investment strategy of Hong Kong stocks in the second half of the year is to improve the performance of the "gold rush".

Short-term fundamentals have the opportunity to repair, mainly around the main line of epidemic prevention and control pressure relief, but do not have too high expectations for demand recovery. Focus on gold mining benefits from policy incentives and resumption of production, supply chain improvement of the automotive industry chain, food and beverage, catering and tourism, home appliances, express logistics and other areas of high-quality companies.

Tan Huimin, chief investment strategist at BNP Paribas wealth management in Hong Kong, predicts that the Q3 stock market will remain volatile, giving "neutral" ratings to US and Hong Kong stocks, but the decline of Chinese stocks has been limited by mainland stimulus policies.Hong Kong stocks are expected to outperform US stocks in the second half of the year, and the Q4 market is expected to improve as the pace of US interest rate increases slows.

In addition, overseas investment banks, including Deutsche Bank, Morgan Stanley, Morgan Stanley and Bank of America, are optimistic about the Chinese market. Take Xiaomo as an example. In its recent report on the second half of the Chinese market, the agency mentioned that the Chinese stock market has attracted more market attention than Asian emerging markets and global markets, and expects the income and earnings per share of the MSCI China Index to grow by 11% this year.

What do the cattle friends think?

Hong Kong stocks in the second half of the year willShow resilience or continue consolidation?

Which plate do you think will rebound first?

You are welcome to share your views in the comments section.~