Huatai Securities released a strategy report on April 27, indicating that the sentiment in Hong Kong stocks has recovered to a neutral level. According to Jin10, factors such as the fluctuating Middle East situation have led to a pullback in expectations for overseas liquidity easing. Combined with the approaching holidays, the upward potential for Hong Kong stocks is currently constrained, with a focus on structural adjustments being crucial.
Huatai Securities advises maintaining allocations along the lines of cash flow certainty and industry certainty. For cash flow certainty, it suggests holding cyclical products with stable cash flow and low capital expenditure pressure, such as coal and aluminum, as well as some low-volatility dividend stocks, including certain local Hong Kong stocks and state-owned banks. For industry certainty, it recommends focusing on the AI chain, which is still on an upward trend, anchored by U.S. stock performance during this week's 'super week.' Investors with a high-risk appetite may consider moderately investing in leading cloud and large model companies.
Kikyo
