Standard Chartered's Leung Chun Fai: Hong Kong stocks have room to catch up and are expected to challenge the 20,000-point mark in the short term.
Liang Zhenhui believes that the long-term prospects of electric vehicle stocks are positive, and the anticipation of favorable policies continues to exist.
According to information obtained from the Zhitong Finance APP, Leung Chun Fai, the Head of Investment Strategy at STANCHART Hong Kong Wealth Management, pointed out that the Hong Kong stock market has found support around the 18,000 level. With the easing concerns about interest rate prospects, last week saw a rebound in the Hong Kong stock market, the Japanese yen, and the Chinese yuan. It is not ruled out that the market is starting to prepare for fund allocation and chasing opportunities in the second half of the year.
He noted that although the market still has high expectations for a rate hike by the United States this month, it is believed that after the rate hike in July, the rate hike cycle may temporarily or even officially come to an end. Therefore, both US bond yields and the US dollar index have shown obvious weakness recently, which is an optimistic signal. Therefore, it would not be too surprising if the market reclaims the 20,000-point level.
However, he pointed out that there is currently no news that excites the market. The trading volume of mainland internet stocks is still relatively weak, but market interest is starting to increase. The first half of the year was weak for the IPO market, but if large-scale enterprises come to Hong Kong for listing in the second half of the year, coupled with trading volume, combined with mainland policies and the trend of the Chinese yuan, it can lead to an improvement in market conditions.
Leung Chun Fai believes that electric vehicle stocks are a long-term positive and the policy outlook continues to exist. This sector is expected to have more news in the Hong Kong A-share market. However, he pointed out that there are differences in technology and development progress among companies, so he advises investors to choose carefully. If they don't mind short-term fluctuations, it can be a sector with potential.
In terms of technology stocks, he pointed out that with the announcement of fines for ANT GROUP and TENCENT last week, the normalization of platform finance continues, which is good news for the industry. With the gradual elimination of regulatory concerns, there is additional impetus for the sector, and the most direct beneficiaries are stocks related to consumer aspects.