Futu Strategy Meeting | Hong Kong Stock Market Outlook After Two Sessions in 2023

We invited Mr. Wong Ching-kai, Hong Kong Investment Director of Taikang Asset, to share fresh authority in the monetary fund market~

To watch the recorded video, click the link below:China-Hong Kong Stock Market 2023 Investment Strategy

The 3-minute video takes you through the appeal of Hong Kong stocks:

Ten lucky viewers have already been selected. mooer who actively participated in the live chat are invited to follow the private message. The live broadcast mentions the fund:

Taikang Kaitai US Dollar Fund HK0000857273

Taikang Kaitai Hong Kong Dollar Fund HK0000772993

Taikang Kaitai China New Opportunities Fund HK0000320223

Topic: Prospects for the Hong Kong Stock Market after the 2023 Meeting

Part 1: F Fundamentals: The domestic economy is showing a weak recovery pattern. The Federal Reserve's monetary policy is the main contradiction and risk

China's economic cycle is ahead of the US and European economic cycles. The market expects China's economic growth to exceed 5%, while the US economy is less than 1%

China's macro, industry and services rebounded as expected. The magnitude was slightly lower than expected, mainly due to external demand being dragged down

The US core CPI slightly exceeded expectations in February, and the labor market and consumption are resilient. Without the SVB incident, the market originally expected an interest rate hike of 50 bps this month

Part 2: V Valuation Aspect: After the valuation has recently been revised, its attractiveness has increased again

Vertical: After recent revisions, the price-earnings ratio of the Hang Seng Index returned to 9.8 times, and the MSCI China Index returned to 10.9 times, but it is still below the long-term historical average and has not overdrawn subsequent momentum

Horizontal: Hong Kong stocks are still 14% off compared to global emerging markets, making cross-market comparisons more attractive

Part 3: M momentum side: slight inflow of capital, reselling overseas active funds to buy is worth paying attention to

The selling pressure of Southbound Capital began to increase in mid-January, and there were signs of bottom-bound capital entering the market in late February

In terms of overseas capital, passive capital continues to be bought, and active capital has also begun to buy. Major foreign investors maintain an overallocated attitude towards China

Summary: Short-term adjustments do not hinder the continuation of the Hong Kong stock market return to the medium-term average

Hong Kong stocks continued to fluctuate downward, continuing to adjust the market after peaking in the short term. Although the international situation is still quite tricky, there has been a reaction in valuations, and the upward space for 2023 is higher than the downside risk

Live highlights:

Sorting out domestic policies and key economic policy priorities of the two sessions:

1. ~ 5% GDP growth target, focusing on improving people's quality of life

-China aims to achieve about 5% GDP growth

- The focus is on improving the quality of people's housing, work, income, education, health care, environment, etc.

2. Increase support for private economic development

-Adhere to the two “unwavering” aspects and support the development and growth of private enterprises

-Create a better environment for private development, treat enterprises with all forms of ownership equally, and protect corporate property rights and entrepreneurs' rights according to law

3. Unswervingly deepen reform and opening-up to respond to geopolitical risks

- Connect with high standards of international economic and trade rules to further expand openness

4. High quality development and industrial upgrading

-Focus on improving scientific and technological innovation capabilities, modernizing industrial systems, and green transformation

5. Steady and progressive, relatively free, and pragmatic governance style

-Macroeconomic policies, demand expansion, reform and innovation, risk prevention and mitigation

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