South funds accounted for 10% of turnover into a trend

Dow Jones global market strategist Lu Tingwei said that if the Hong Kong stocks to a record high, there must be financial support from the south to the Mainland, the market turnover accounted for up to 10%. He pointed out that now Southbound funds are mainly institutional investors such as insurance companies. It is expected that when the real estate market in the third-tier cities of the Mainland falls, the retail investors will have the chance to move to Hong Kong and Hong Kong and bring new money to the southbound trading.

Dow optimistic H shares outperform the world

Lu Tingwei said taking this Tuesday as an example, southbound funds accounted for 7.5% of the market turnover. This ratio is expected to rise to 10% due to the fact that the Mainland authorities have not further tightened their capital outflows unless the U.S. interest rate hikes led to large-scale mainland fund-raising Flows forced the central shot again, otherwise, southward funding will continue to increase into Hong Kong stocks.

He is optimistic about Hong Kong stocks and H shares outperformed the global market this year, preferred H shares, second-choice Hong Kong stocks, A shares are relatively backward. Optimistic about the H shares on the grounds that the property market in the Mainland there is a risk, the authorities also suppressed financial products, inflation may rise, prompting funds will be put into the stock market, while the H shares P / E was significantly lower than the A shares.

Suddenly, the dollar has become the biggest risk

However, Hong Kong stocks may be short-term adjustment, the biggest risk from the dollar rebound, Lu Tingwei that due to seasonal factors, the United States in the first quarter GDP performance is generally lower than the other quarters, but once the seasonal impact is limited, the first quarter GDP exceeded expectations that the dollar Bounce, Asian stocks including Hong Kong stocks will be selling pressure.

For this year’s performance in China’s stock market, Lu Tingwei loves over-old stocks such as domestic banks, domestic insurance, energy and materials. Compared with the new economy stocks, regardless of the old economy or new economy stocks, the profit growth of the company is expected to range from 10% to 15% this year. The price-earnings ratio of the old economy stocks will be much lower. He also optimistic about the performance of oil this year, is expected to rise to 60 to 70 US dollars a barrel level, mainly supply and demand improvement.