Bank of East Asia: Hong Kong stocks may trade sideways for a while, with a target range of 19,800 to 20,000 points for the Hang Seng Index in the first half of the year.
Lee Chun-ho, Chief Investment Strategist at Bank of E Asia, stated that the Hong Kong stock market is currently at the bottom of a "U-shaped" state. However, due to the lack of very positive news, it is expected to remain sideways for a period of time. Whether there will be a rebound or not will depend on factors such as interest rates and government policies. The target for the Hang Seng Index in the first half of this year is between 19,800 and 20,000 points. As the Hong Kong stock market may remain sideways for a period of time, Lee Chun-ho suggests that investors should choose utility stocks, defensive stocks, or stocks with high dividend levels. Although the stock prices may not experience significant increases, the returns will be higher than fixed deposits or interest rates. Lee Chun-ho also mentioned that he believes the performance of the IPO market will be good this year. When interest rates clearly show a downward trend, the costs of stock fundraising and interest rates will be more certain. It is expected that during the period from the peak of interest rates to the first rate cut, more IPOs will be attracted. This improvement is not only limited to Hong Kong, but also expected to be seen globally.
Zhitong App learned that Li Zhenhao, Chief Investment Strategist of Bank of E Asia, stated that the Hong Kong stock market is currently at the bottom of a "U-shaped" state. However, due to the lack of very positive news, it is expected to remain sideways for a period of time. Whether there will be a rebound or not depends on factors such as interest rates and national policies. The target for the Hang Seng Index in the first half of this year is 19,800 to 20,000 points.
As the Hong Kong stock market may remain sideways for a period of time, Li Zhenhao suggests that investors should choose utility stocks, defensive stocks, or stocks with high dividend levels. Although the stock prices may not have a large increase, the returns will be higher than fixed deposits or interest rates.
Li Zhenhao said that he believes the performance of the IPO market this year will be good. When interest rates clearly show a downward trend, the cost of equity financing and interest rates will be more clear. It is expected that during the period from the peak of interest rates to the first rate cut, it will help attract more IPOs. It is believed that not only Hong Kong, but also global IPOs will improve.