Institution: outstanding performance price ratio of Hong Kong stock allocation

After a long and deep downturn, the current valuation of Hong Kong shares has become more attractive. On the one hand, the dividend yield of telecom operators and state-owned big banks is close to or even more than 10%; On the other hand, the PE (TTM) of Hang Seng Technology Index has declined from 50 times of the high to 35 times of the current level.

After the recent downturn, the allocation value of Hong Kong shares has further highlighted, and southward funds have remained at a high level in the past two weeks. Separated and observed, these southward funds on the left are concentrated in Tencent, Meituan, WuXi Biologics and other leading enterprises in a few characteristic fields, which are generally conservative, configurable and exploratory.

Looking ahead to Hong Kong stocks, we still believe that the big market needs to wait for at least two core factors: 1) China's economic recovery (we predict it at 1Q23); 2) The monetary policy of the Federal Reserve was reversed (we think it was at the end of 1Q23 to the beginning of Q23).