① How significant is the profit elasticity of Apple Supplier enterprises due to tariff exemptions? ② How do Institutions view the subsequent performance of Technology stocks?
According to the Financial Association on April 23 (Editor: Hu Jiarong), benefiting from Trump's easing attitude towards tariffs on China, most Consumer Electronics stocks in Hong Kong have strengthened. As of the time of writing, COWELL (00856.HK), AAC TECH (02018.HK), and BYD Electronics (00285.HK) have risen by 6.51%, 4.09%, and 3.03%, respectively.
Note: The performance of Apple Supplier stocks.
Easing attitudes drive market sentiment.
On Tuesday, local time, President Trump delivered a speech in public, acknowledging that the tariffs on goods imported from China are currently too high and that tax rates are expected to be significantly reduced. This marks an easing of Trump's stance on his signature tariff policy.
At the same time, U.S. Treasury Secretary Mnuchin also stated at a JPMorgan event that the trade war between China and the USA will soon cool down.
It is noteworthy that the USA has previously implemented tariff exemptions on Smart Phones, computers, and other electronic products. A Research Report by Minsheng Securities pointed out that the implementation of the 'Specific Product Equivalent Tariff Exemption Guidelines' will promote the EPS recovery of Apple Supplier enterprises.
The latest Research Report from Huayuan Securities emphasizes that although multiple rounds of tax increases by the USA in the Asia-Pacific region have raised market concerns, the irreplaceability of China's manufacturing has become a key stabilizer. This institution points out that during the global Industry Chain restructuring process, China still maintains a total factor productivity advantage; the tariff competition will ultimately return to a balance point, and the current stage of process disruption is a short-term pain.
Network Technology stocks are also boosted by sentiment.
As of the time of writing, XIAOMI-W (01810.HK), Alibaba-SW (09988.HK), and TENCENT (00700.HK) have respectively risen by 5.07%, 4.45%, and 2.74%.
Note: Performance of Network Technology stocks.
From the above chart, both Alibaba and TENCENT have increased by over 2%. Expectations of easing tariffs may alleviate market concerns regarding geopolitical issues, and these two companies, as representatives of Hong Kong's Technology stocks, naturally attract significant market attention.
Meanwhile, southbound funds continue to increase their investment in Network Technology stocks. As noted by Quan Guo Fund in its first quarter report, technological innovation, domestic consumer demand, and marginal improvements in certain industries have become the core directions for fund managers' layouts, while coping strategies under globalization challenges have been repeatedly mentioned.
They also emphasized that a new generation of entrepreneurs and capital has shown unprecedented patience, willing to invest in foundational research and development in key technology areas that have long R&D cycles, high investments, and are in a 'bottleneck' state. 'This positive attitude and action is the fundamental confidence source for our bullish view on the new momentum of China's technological innovation.'
