The word "no" is more appropriate to describe the current Hong Kong stocks.

Hong Kong stocks spent the whole of last year in a decline and downturn, and in March this year, trapped by various negative factors at home and abroad, the Hang Seng index once fell to 18000 points. The Hang Seng Technology Index is even worse than the Hang Seng Index. It has experienced big ups and downs less than a few years after its birth. It hit a low in March this year and was only 1max 3, which reached its peak a year ago.

Falling to this level can definitely be regarded as the darkest moment for Hong Kong stocks.

But that's what the stock market is like, changing its face faster than anyone else. March released a strong confidence to stabilize the market, although the middle also experienced shocks, but never fell below the low of mid-March. In May, with the introduction of more and more stable economic policies, the Chinese stock market also entered a substantial rebound.

The Hang Seng Index has rebounded 16% from its low so far, and if calculated from its March low, the rebound rate has reached 22%. The Hang Seng Technology Index has rebounded more strongly, reaching 47% and 34% respectively compared with its March and May lows.

Last week, the policy once again sent a big gift package to the Hong Kong market, ETF transactions into interconnection, Hong Kong and the mainland capital flows will be more and more convenient, this source of living water, the Hong Kong stock market is obviously the beneficiary.

Although a wave of correction was triggered yesterday afternoon when major shareholders reduced their holdings of Tencent, from a rational point of view, the reduction is not new. Although the past few reductions have also triggered a decline, they are all short-term effects, coupled with the fact that Hong Kong stocks are now gaining momentum. It is expected that the impact of the reduction will be very limited.

Another major event this week is the 25th anniversary of Hong Kong's return to the motherland. Hong Kong, which has experienced too many ups and downs over the years, as well as the Hong Kong market, will start at a new historical starting point.

01 Pearl of the Orient, looking forward to restoring highlights

The rise and fall of a capital market is inseparable from the macro and time background, and so is the Hong Kong stock market.

In the 30 years since the establishment of the socialist market economic system with Chinese characteristics, Hong Kong stocks have played an important role. Since the first domestic enterprise, Tsing Tao Beer, landed in Hong Kong in 1993, Hong Kong and the mainland have continuously deepened the cooperation between the real economy and the capital market. Hong Kong stocks have also witnessed the growth, development and growth of one domestic company after another. This is a model of mutually beneficial cooperation. Hong Kong has been able to develop into an international financial centre and mainland companies have been able to grow with the help of capital.

However, Hong Kong society has not been at peace in recent years, especially the social events in 2019 and the COVID-19 epidemic since 2020. Fortunately, it did not take too long to go from chaos to governance, and Hong Kong society has now returned to normal.

Under the great changes that have not happened in a century, whether in the global development pattern or in the future development of China, the importance of the city of Hong Kong cannot be overstated. To demonstrate to the world the achievements of China's development, and to demonstrate China's road confidence and cultural confidence, Hong Kong is the best testing ground.

From this point of view, the strategic value of Hong Kong has been highlighted, and the country also has sufficient reasons to build and develop Hong Kong.

Therefore, the coming "July 1" celebration is of great significance.

From the perspective of the timeline, it is an integer day for the 25th anniversary and four centuries, and it is worth summing up the past and planning for the future. From the point of view of time, several major shock events have all come to an end. Hong Kong society will return to the rising track if there is no accident. More importantly, in order to help Hong Kong return to the normal development track, I believe that there will be no less "generous gifts" from the state.

In fact, these "generous gifts" have been released to some extent, such as ETF interconnection last week. Of course, the extent of the "gift" will not be known until this Friday, but it does not hinder the market's generally positive expectations.

Looking forward to the future of Hong Kong, it is the best choice to continue to rely on the motherland and face the world.

The country needs Hong Kong to continue to serve as an external window, give full play to its advantages and make greater contributions to the country's development; in turn, Hong Kong needs to continue to integrate deeply into the country's great development strategy, so as to consolidate its advantages and achieve new breakthroughs.

Finance is one of Hong Kong's greatest advantages, so "generous gifts" will not bypass this advantage, but will only find ways to make it even greater. There are many ways to do it, but the most practical one is to let domestic "running water" irrigate Hong Kong's financial market more to achieve greater mutual benefit. Since the opening of the Hong Kong Stock Connect in 2014, although there have been many stumbles in the middle, but on the whole, it is a successful experiment. And on top of this successful experience, expanding the scope of promotion is a matter of high probability.

Have confidence in China, have confidence in Hong Kong, and should have confidence in Hong Kong stocks.

02 Don't miss the high-quality assets of Hong Kong stocks again.

Return to Hong Kong stock investment, although the direction is good, but specific to the plate, still need a little more "mindfulness".

In a mature market like Hong Kong, even if it goes up, it will be very difficult for both rain and dew to rise to heaven, and it is more likely that it will still be a structural market.

The soundest way to invest is to invest in the best assets. Therefore, the first thing to do in investing in Hong Kong stocks is to find the best quality assets in the Hong Kong stock market.

The question is, what is such an asset?

In fact, it is very simple, the "pillar" of Hong Kong stocks.It used to be financial real estate, but now it has become high-tech.

From a stable point of view, financial real estate is undoubtedly a better choice, but at the same time, these industries do not have too many growth expectations and belong to the representative of excessive stability. Although there are many variables in high technology, but in terms of its growth prospects, it is greatly away from the traditional financial real estate.

Over the years, high technology has been leading the incremental space of the Hong Kong stock market, especially Internet technology represented by Tencent, as well as the smart phone supporting industry chain, and biotechnology has been added after 2018. These sectors have given huge returns to investors.

It is just that in the past year, high technology has encountered the problem of tighter regulation and a big frenzy, coupled with more and more "ghost stories". For example, CXO enterprises have been listed on the entity list in the United States, and high-tech companies have fallen to the bottom all at once, and they have even become outcasts attacked by everyone in the Hong Kong stock market. The Internet, online education and biotechnology have not been spared. Because of the excessive tragedy, it once led to a loss of confidence in the high-tech market in Hong Kong stocks, and many technology stock funds suffered a sharp retreat. countless star fund managers were buried.

From the point of view at that time, the expectations of high-tech growth kept falling, and the performance, valuation and stock prices fell frequently, which was really not worth taking a look at. However, from a long-term point of view, these are inevitable "pits" in the process of development, because it is undeniable that high technology is the most important technological force leading the development of productive forces.

So,In the general direction, technology stocks should not be bearish, and in view of the large fluctuations of technology stocks, they should distinguish the stage of their market. The big hot and bubble stage, of course, should be avoided, but when various bottoms, such as policy bottom, performance bottom, market bottom and so on occur frequently, it means that the reversal period is coming, and we should boldly re-embrace it at this time.

Over the past month or so, we have clearly seen the emergence of these bottoms. We have had sufficient arguments and have been verified by the market one by one as a focus on tracking the ETF- of the Hang Seng Technology Index.Hang Seng Technology Index ETF (159742.SZ) $It has rebounded by more than 50% since its March low.

Now, we are sure that the reversal trend of Hang Seng technology has been established and will continue.

03 Pay close attention to these technological targets.

Which subdivision of technology sectors in Hong Kong stocks is most worth grasping?

No more than the following three categories.

The first category is the industry with super growth space, which must be new energy.Electric vehicles, photovoltaic, wind energy and even hydropower are counted, especially the new generation of consumer terminals represented by electric vehicles have replaced smartphones as the new consumer electronics tuyere, and the electric vehicle industry chain has successfully connected to the smart phone industry chain. from the perspective of permeability, electric vehicles still have a lot of room for growth, and the related industry chain is the only one that is expected to replicate the brilliant smartphone industry chain.

From a short-term point of view, these plates have been repeatedly hyped, and recently they are in a hot stage. For risk-averse investors, they are suspected of overheating, but for long-term investors, they should not be missed, because even if they pull back, they will continue to go up or even hit new highs in the future.

The second category is biotechnology.In terms of the space for the growth of the industry, biotechnology is no worse than new energy, especially in China, with a large population base, rapid aging and a large amount of medical demand, biotechnology is not out of business, just because of the country's fee control policy. market expectations for them are not as strong as new energy.

Comparing biotechnology in the entire Hang Seng technology sector or even the entire Hong Kong stock market, it is obvious that there are still a few industries with more room for growth, and Hong Kong stocks are concentrated in quite a number of excellent biotechnology companies in the mainland. The companies approved by PD-1, the most popular anticancer drug, except Hengrui Pharmaceutical and Yuheng Biology, are all in Hong Kong stocks, and many of the famous CXO companies are also concentrated in Hong Kong stocks.

More importantly, the recent rebound in biotech stocks is quite dazzling, especially innovative drugs and CXO. Some stocks have nearly doubled from their low prices.Hang Seng Medical ETF (513060.SH) $The rally is clearly felt. ETF, which focuses on CXO, innovative drugs and pharmaceutical internet platforms, Hang Seng Medical ETF has enjoyed a rebound in pharmaceuticals and the internet over the past month, up 25 per cent.

Third, yes.Internet technology company. Including traditional BAT, NMM, etc., as well as emerging AI and cloud computing companies, these companies were once questioned by the market because their business growth expectations were lowered, or because they were overvalued and suffered heavy losses, but now as the repressive factors (regulatory factors) gradually fade, performance expectations gradually reverse, coupled with the continuous creation of new growth points, stock prices are also back into the upward channel. If you take into account that the decline in the past year has been too severe, the valuation repair market can still continue.

More importantly, if the country wants to achieve more breakthroughs in the field of science and technology, it cannot ignore the role of Internet companies, which is the biggest reason why the country has begun to change its attitude after a year of antitrust. Although the regulation is strict, it is not intended to deal a fatal blow to Internet companies. on the contrary, it is necessary for Internet companies to embark on a healthier path of development.

Therefore, Internet companies give up the idea of using traffic status to harvest users, and shift the focus of development to a road that is more beneficial to the country, society, companies and users, then the investment value of these companies is still high.

04 The end.

The Hong Kong stock market has always been a special existence.

This year marks the 25th anniversary of Hong Kong's return to the motherland, and many things have happened, but two points remain unchanged: first, Hong Kong will increasingly integrate into the grand strategy of national development and make more and more use of its financial advantages. give full play to the role of the bridge between the country and the world; the second is the state's support for Hong Kong, be it policies, talents, capital and industries.

Although the Hong Kong stock market will be challenged by gem and Science and Technology Innovation Board, the institutional advantages of the Hong Kong stock market and the advantages of the system and mechanism are difficult to shake. The attraction of the Hong Kong market to companies to be listed and capital at home and abroad is still very strong. From this point of view, the Hong Kong stock market, which has just experienced a sharp fall, has more and more medium-and long-term allocation value, especially those high-tech sectors.

At the present ceremony of July 1st, if we look at Hong Kong stocks and Hang Seng Technology, we can be bolder.