Hong Kong stocks have comparative advantages
Hong Kong stocks have comparative advantages
The logic behind this is not hard to understand: the lower valuation comparative advantage not only provides a buffer against external volatility, but also makes overseas Chinese stocks more resilient in response to positive Chinese policy signals.
Looking ahead, I believe Chinese policy easing will remain supportive for the market; Rising expectations of monetary tightening overseas will inevitably bring pressure, but Chinese policy will remain the dominant variable. I reiterate that Hong Kong stocks in 2022 will be a year of mean reversion.
I recommend short-term focus on "stable growth" sectors, such as some financial and real estate sectors and related industrial chains, as well as the mid-stream and downstream consumer sectors benefiting from lower upstream prices and increased policy support.
Quality growth targets in the medium term also worth investors attention. Also on the watch are high-dividend targets benefiting from falling Chinese bond yields and local banks benefiting from imminent US interest rate rises.
The logic behind this is not hard to understand: the lower valuation comparative advantage not only provides a buffer against external volatility, but also makes overseas Chinese stocks more resilient in response to positive Chinese policy signals.
Looking ahead, I believe Chinese policy easing will remain supportive for the market; Rising expectations of monetary tightening overseas will inevitably bring pressure, but Chinese policy will remain the dominant variable. I reiterate that Hong Kong stocks in 2022 will be a year of mean reversion.
I recommend short-term focus on "stable growth" sectors, such as some financial and real estate sectors and related industrial chains, as well as the mid-stream and downstream consumer sectors benefiting from lower upstream prices and increased policy support.
Quality growth targets in the medium term also worth investors attention. Also on the watch are high-dividend targets benefiting from falling Chinese bond yields and local banks benefiting from imminent US interest rate rises.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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