CMBI Strategy Hong Kong Stock Market September Strategy Report: Liquidity-Driven New Round of Gains for Hong Kong Stocks, Focus on Three Offensive + Two Defensive Positions

Gelonghui, September 15 | A research report by China Merchants Securities Strategy pointed out that looking ahead, the Hong Kong stock market will still be mainly driven by liquidity. With abundant internal and external liquidity, Hong Kong stocks are expected to usher in a new round of increases. According to the mid-year reports of Hong Kong-listed companies, earnings growth rates are at historically low levels, with notable structural divergence between old and new economies. The structural performance led by technology is underpinned by solid profitability. In terms of allocation strategies, focus on three offensive sectors (technology, non-ferrous metals, non-banking finance) and two defensive sectors (turnaround plays and dividend stocks).