Kelvin Wan, head of investment strategy at KGI Asia, pointed out that with the Hang Seng Index's low point this year at 14,794 points as the base scenario, there is a greater chance that the Hang Seng Index will reach 20,900 points in the next six months, with a maximum potential increase of 22% in a year. In terms of valuation, the market expects each Hang Seng Index constituent stock to have an earnings per share of 2,045 yuan, up 7.5% annually. The forecast price-to-earnings ratio of 20,900 points is 10.22 times, still lower than the average P/E ratio of the Hang Seng Index over the past ten years, so the momentum of the bullish market is believed to remain strong.

Kelvin Wan believes that the pattern of the contest in the second half of this year will shift slightly towards bullish factors, including the “combative combination” of property policies accelerating the mainland real estate market hitting bottom, state-owned enterprises actively dividend-paying, the relatively low valuations of Hong Kong stocks being attractive to mainland and overseas fund inflows. Among them, he believes that northbound fund flows will continue to move southward.

He suggested that KGI Asia's focus stocks include Tencent (00700.HK), Hong Kong Stock Exchange (00388.HK), Ping An Insurance (02318.HK), Haier Smart Home (06690.HK), China Unicom (00762.HK), Bank of Communications (00939.HK), China Resources Power (00836.HK), Dongfang Electric Corporation (01072.HK), Anta Sports (02020.HK), Ctrip (09961.HK), and Pop Mart (09992.HK).

Julian Chu, Chairman of KGI Investment Advisory, stated that the AI ​​boom in the future will continue to support the momentum of Taiwan's stock market, but from now until the fourth quarter, the index is likely to consolidate with fluctuations. In terms of investment recommendations, he suggests focusing on sectors or individual stocks with low base numbers and low valuations in the third quarter. For AI beneficiaries, he suggests waiting for moderate valuation corrections before making medium- to long-term layouts. Julian Chu predicts that the profit growth momentum of Taiwan's stock market will slow down in the second to third quarters, limiting the performance of the index in the third quarter. Also, the high valuation will make the stock market more sensitive to any negative news, so pay attention to the risk of pullbacks. However, since the structural growth of AI will continue until the year after next, if the valuations of related beneficiaries are moderately corrected, they can make medium- to long-term layouts again. He expects that Taiwan's earnings growth momentum will turn stronger again starting the fourth quarter, which will help promote the performance of Taiwan's stock market with the improvement of its visibility for next year.

Julian Chu predicts that the profit growth momentum of Taiwan's stock market will slow down in the second to third quarters, limiting the performance of the index in the third quarter. Also, the high valuation will make the stock market more sensitive to any negative news, so pay attention to the risk of pullbacks. However, since the structural growth of AI will continue until the year after next, if the valuations of related beneficiaries are moderately corrected, they can make medium- to long-term layouts again. He expects that Taiwan's earnings growth momentum will turn stronger again starting the fourth quarter, which will help promote the performance of Taiwan's stock market with the improvement of its visibility for next year.