After several years of adjustment, the Hong Kong stock market has swept away its downturn this year, and the Hang Seng Index is set to end its four-year declining streak.

Looking back over 2024, the Hong Kong stock market did not have an ideal start, but since February, it has been on a rollercoaster of upward trends, recording a rare "ten consecutive days of gains" in April, and peaking around the National Day, with the Hang Seng Index successfully reclaiming the 20,000 point mark, making Hong Kong stocks once again lead the global market. As of the close on December 10, $Hang Seng Index (800000.HK)$ the cumulative growth for the year stands at 19.15%, $Hang Seng TECH Index (800700.HK)$ A cumulative increase of 21.99%.

In terms of sectors, high dividend Assets have become the focus of the market this year, with Financial, Coal, Electrical Utilities, and other Energy sectors being popular among investors. The Information Technology sector also performed well, with Network Technology stocks experiencing a valuation rebound, and giants like MEITUAN and XIAOMI seeing significant gains. Data shows that the Financial and Information Technology sectors led the rise in Hong Kong stocks this year, increasing by 44% and 39% respectively.

Among them, China-Affiliated Brokerage stocks are the biggest contributor to the rise of the Financial sector. $CMSC (06099.HK)$ Surged nearly 170%, leading the entire industry; additionally, $GUOTAI JUNAN I (01788.HK)$、 $CGS (06881.HK)$ 、 $SWHY (06806.HK)$ This year has seen an overall increase of over 90%. $CHINA RE (01508.HK)$ 、 $CHINA TAIPING (00966.HK)$ Respectively up by 115.17% and 97.51%.

The Information Technology Sector stands out due to the outstanding performance of Network Technology stocks, among which the market cap of the constituent stocks in the Index exceeds 60 billion HKD.$MEITUAN-W (03690.HK)$ Leading the way, it has skyrocketed nearly 110% this year, outpacing major Internet Plus-Related giants. $TRIP.COM-S (09961.HK)$ 、 $XIAOMI-W (01810.HK)$ With respective increases of 103.35% and 98.40%. In addition, $TENCENT (00700.HK)$ 、 $JD-SW (09618.HK)$ It has also increased by about 40% this year.

Institutions outlook on the Hong Kong stock market trends for 2025.

Looking ahead to 2025, institutions suggest focusing investments in the Hong Kong stock market around two main lines: high elasticity and high dividends.

BOCOM INTL stated that the low valuation of the Hong Kong stock market offers a higher safety margin, and the market's sensitivity to needed improvements is increasing, recommending focusing investments around the lines of high elasticity and high dividends. In a low-interest-rate environment, the growing demand for dividend yields is further enhancing the investment value of high-dividend stocks. This is particularly important as the global economy gradually emerges from stagnation and transitions to recovery, highlighting the resilience characteristics of the Hong Kong market.

CITIC SEC pointed out that the current valuation of the Hong Kong stock market remains extremely attractive on a global scale. Especially under the backdrop where the expected revenue growth rate of the major broad index in the Hong Kong stock market for 2025 is higher than this year, and the performance pressure has significantly eased, its cost-effectiveness in terms of valuation and earnings matching dimensions is increasingly prominent. Looking ahead, as the influence of southbound funds in the Hong Kong stock market continues to rise, the growth and financial sectors they prefer may receive better liquidity support.

For the investment layout in 2025, China International Capital Corporation recommends four main lines: First is the direction of growth momentum, including Lithium Battery, high-end manufacturing, as well as Semiconductors, Consumer Electronics, Software, and other Technology hardware and software; Second is the direction of resilient external demand, such as Electrical Utilities, Commercial Vehicle, home appliances, and globally priced resource products; Third is the direction of new dividends, focusing on high dividend assets in the CSI SWS Food & Beverage index and other broad consumer sectors; Fourth is the direction of policy support, focusing on the impact of policies and Capital Markets reform.mergers and acquisitions.The impact of restructuring, repairing losses, and local government debt reduction in related fields.

China International Capital Corporation recommends focusing on three types of structures: first, industries that are clearing supply and policy cycles; second, sectors supported by policy, such as home appliances, autos, and computers, Semiconductors, under the "trade-in" policy; third, directions with stable returns, such as high dividends from state-owned enterprises.

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Editor/rice