Due to factors such as the slowdown in economic data growth, the overall performance of Hong Kong stocks in January was poor. As of January 30, 2024, the Hang Seng Index, Hang Seng Technology, and Hang Seng China Enterprise Index had cumulative declines of -7.88%, -17.68%, and -8.55%, respectively.

Although the recent trend of Hong Kong stocks is weak, after many adjustments, the valuation of the Hong Kong stock market is currently at the bottom of history. The PE and PB valuations of the Hang Seng Index are both historically relatively low, and have a high cost performance ratio and safety margin.

Looking ahead, Everbright Securities pointed out that in the future, the Hong Kong stock market is also expected to recover steadily with active policy efforts. After the Politburo meeting and the Central Economic Work Conference set the tone, more specific policies for steady growth have recently been introduced, including the central bank's announcement of a downgrade on January 24, continued optimization of real estate policies, issuance of a list of two batches of trillion special treasury bonds, and bank adjustments to deposit interest rates. It is foreseeable that in the future, it is likely that more steady growth policies will be introduced and implemented to help the economy gradually recover.

In terms of allocation, analysts recommend focusing on: 1) Technology stocks such as semiconductors, communications, and electronics where the industrial boom coexists with the AI main line. 2) The Politburo meeting emphasized “effectively improving the core competitiveness of state-owned enterprises” and recommended continuing attention to the “China Special Assessment” theme, including building decoration, petroleum and petrochemical, banking, coal and other industries.

Futu News has compiled the February Hong Kong stock shares of some institutions for reference:

Cow friends, which is your favorite February gold stock?

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