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<Research>BOCOMI: HK Stocks Show Sustained Resilience; 'High Elasticity + High Div' Strategy Recommended
Recommend 147 Positive 262 Negative 116 |
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BOCOMI released a report highlighting that uncertainties surrounding U.S. President Donald Trump’s policies, compounded with brewing concerns over "stagflation" in the U.S., evidently pressured U.S. stocks. For Hong Kong bourse, following a notable rally, technology and internet stocks have seen substantial valuation recovery, with crowding levels reaching relatively high points, leading to a slowdown in upward momentum. Despite sustained net inflows from southbound funds, technical pullbacks in the Hong Kong market have emerged due to profit-taking pressure from foreign and short-term investors. While dotcoms underwent adjustments, domestic demand stocks succeeded the relay, demonstrating resilience in the Hong Kong market. Although HK’s dotcoms faced a correction, consumption-boosting policies followed the conclusion of the Two Sessions, with supportive measures like childcare subsidies, expected to expand. The market reacted to these policy expectations, preemptively positioning for a domestic demand recovery, with consumer discretionary warming up and supporting an independent rally in the latter half of last week. The U.S. Federal Reserve is set to announce its interest rate decision early Thursday, with market-implied expectations from interest rate futures suggesting little doubt that the Fed will once again "skip a rate cut". However, the release of the economic projections summary, including the interest rate path forecast and Fed Chair Jerome Powell’s stance, will undoubtedly be a critical variable influencing near-term overseas liquidity trends. BOCOMI continued to recommend a "high elasticity + high dividend" allocation strategy. On the technological innovation front, it remained bullish on Hong Kong’s AI and dotcom sectors, particularly as domestic foundation models like DeepSeek drive a valuation re-rating window for AI infrastructure providers and computing power-related stocks. The broker advised focusing on leading companies with strong technical foundations and commercialization capabilities. The semiconductor supply chain also warrants attention, especially mainland chip design firms with import substitution potential amid an accelerating localization process. The broker cautioned that recent overseas volatility remains elevated, and adjustment risks triggered by risk-off sentiment cannot be overlooked. It recommended maintaining high-dividend sectors as a defensive base, with a focus on utilities, telecoms and banks - sectors offering stable cash flows and attractive dividend yields. AAStocks Financial News |
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