HSI’s next three months of technology consolidation phase

The Hang Seng Index has risen by nearly 18% from the year-to-date, mainly due to the clear changes in the two key factors that have plagued Hong Kong stocks: the Sino-US trade war is due to the willingness of both countries to resolve disputes through negotiations; the monetary policy of China and the United States All have made changes in the liquidity of the favorable asset market. However, if the performance of large-scale enterprises and the economic performance of China and the United States are not satisfactory, it will increase the pressure on the market to retreat, dragging the HSI to rectify in the next three months, and the target can be adjusted to 27,000 points. .

The author suggests that investors and other HSIs adjust their holdings to Hong Kong stocks below 27,500 points, and absorb quality stocks in segments. The optimistic sectors include cement that benefits China policy (Conch Cement A-600585.CH) and Bank of China (ICBC- 1398 and China Merchants Bank -3968), international insurance (AIA-1299) benefiting from Sino-US trade negotiations, Geely Automobile (175), Shijiazhuang Group (1093) and HSBC Holdings with attractive valuations and medium and long-term profitability (005), benefiting from the development of high-quality Chinese property stocks in Dawan District