Hong Kong Stock Market Sees Positive Growth, Anticipates Significant Recovery in 2024
Author: Zhao Mingchao
The Hong Kong stock market is gaining increased financial attention as southbound funds have been net buying for 12 consecutive trading days since February 7. Public offerings are also actively deploying Hong Kong stock-related products, indicating a positive outlook for the market. Industry insiders believe that the current valuation of Hong Kong stocks is still relatively low, presenting a favorable opportunity for investors.
The performance of the Hong Kong stock market has been promising, with the Hang Seng Technology Index increasing by more than 16% and the Hang Seng Index by more than 7% since February. Southbound funds have shown strong interest in Hong Kong stocks, with total net buying amount reaching 33.328 billion yuan, and a projected surpassing of 46 billion yuan by the end of the year.
Fu Beijia, fund manager at HSBC Jinxin Shanghai-Hong Kong-Shenzhen Fund, attributes the rebound of Hong Kong stocks to improved profit expectations, increased liquidity, and favorable policies. As optimism grows for the market outlook, public offerings are continuing to introduce Hong Kong stock-related products, further boosting investor confidence.
Looking ahead, Fu Beijia predicts a significant recovery for the Hong Kong stock market in 2024, driven by the Federal Reserve’s interest rate cuts and accelerating profits of listed companies. The risk premium model of Guosen Securities also suggests a positive trend, indicating a potential revenue and profit growth rate of over 15% for the Hang Seng Index in 2024.
However, Wang Xueheng of Guosen Securities warns that while some sectors have experienced upward revisions, emotional recovery in the market may take time. Investors are advised to exercise caution and patience as the Hong Kong stock market navigates through this period of transition.
In conclusion, industry experts remain optimistic about the future of the Hong Kong stock market, with expectations of a noticeable recovery in 2024. As economic conditions improve and investor confidence strengthens, Hong Kong stocks are poised for growth and stability in the coming year.
(Editor: Xu Nannan)