STOCKS | Huatai Securities Recommends Low-Volatility Dividend Stocks as Core Holdings in Hong Kong

According to Jin10, Huatai Securities said Hong Kong stocks still face uncertainty in the global liquidity environment, which limits further valuation recovery, so it continues to recommend low-volatility dividend stocks such as banks and utilities as core holdings, while reducing exposure to high-U.S. Treasury-yield beta sectors such as nonferrous metals. The firm said all Hong Kong stocks saw a sharp rebound in year-on-year earnings growth in the first half of 2026, but performance remained divergent: high-dividend earnings growth turned positive, mainly driven by resource stocks, innovative drug stocks maintained high growth, and the decline in internet stocks widened. Based on earnings clues and market reaction to rate-hike expectations, Huatai Securities continues to recommend holding leading innovative drug and CXO names that combine earnings delivery and capital recognition. It also said food and beverage and other essential consumer stocks, which it previously highlighted, have entered the right side of the fundamental bottom as expected, but lack short-term catalysts and require patience.