Institutions: optimistic about Hong Kong's new infrastructure sectors

Looking back on 2021, dragged down by China Internet, education and other industries, the Hang Seng Index fell by 15%, ranking at the bottom of the global stock index, and even a rare valuation breakout.

Looking forward to 2022, which sectors of Hong Kong stocks have investment opportunities? In this regard, Zhang Ting, manager of Rongtong's core value fund, expressedher latest opinion.

Looking forward to 2022, Zhang Ting judged that after nearly a year of adjustment, the overall valuation level of Hong Kong stocks is currently low. According to Wind data, the Hang Seng Index PE (TTM) is 10.53 times, at a historical quantile of 35.46%, which is near the median of the past ten years, especially the Internet, real estate and other sectors have been at a long-term bottom position. In 2022, the Hong Kong stock market is likely to usher in an upward trend, but it is still necessary to be alert to risks.

Zhang Ting believes that as the opportunity to rebound is more difficult to grasp, we can pay attention to the track with high certainty.

For example, industries such as potential valuation repair opportunities in the new economy sector dominated by the Internet, industries such as infrastructure industry chain and real estate fermented by stable growth expectations, and local financial stocks in Hong Kong, which has benefited from the rising interest rate environment overseas, there may be some investment opportunities this year.

Especially the new infrastructure, especially the sectors related to new energy and new infrastructure, such as green power, distribution network transformation, photovoltaic, wind power and so on.

The Central Economic work Conference held in December 2021 stressed that economic work next year should be "stable" and "strive for progress in the midst of stability", especially proposing "moderately ahead of time to carry out infrastructure investment". With the promotion of policies, infrastructure construction is expected to usher in an upward period. At the same time, the infrastructure sector as a whole is not sensitive to liquidity. With the tightening of Fed policy, foreign investment in Hong Kong stocks may gradually withdraw, so infrastructure, especially new infrastructure, is a safer allocation direction.