Hong Kong is in a political storm, but China still intends to support its economy, and Hong Kong continues to be a good window into the financial asset market in the Mainland Local stocks remain attractive
Patek recently downgraded Hong Kong’s rating to “Neutral”. Gaud said that Hong Kong’s environment is facing challenges, and patience is required when investing, but its economic status is still unique, and local concept stocks generally have strong fundamentals and attractive valuations. In addition, many local concept stocks involve a large number of Chinese businesses, such as Chow Tai Fook (01929 ), If China-US trade talks reach a consensus, such stocks will be good.
Alibaba builds up, expects Chinese stocks to return to Hong Kong
After Alibaba (09988) returned to the Hong Kong stock market, the market looks forward to more Chinese stocks to follow in the future. Gaud said that after the U.S. presidential election, the situation of Anti-China may become serious, and it is expected that Hong Kong will loosen its rights to the same shares. Compared with other Asian markets, the Hong Kong market may give higher estimates. In fact, Alibaba’s performance is better after listing, or it may make China’s stocks have the same expectations.
In the Chinese market, Patek refers to the long-term downward trend of GDP growth in the Mainland
It is expected that GDP for the whole year will be 6.2% this year, and it will slow down to 5.9% next year. It is also expected that pork prices will increase after the Chinese New Year. Falling down, inflation will peak in the first quarter of next year. Although the People’s Bank of China will not have large-scale stimulus measures, it may lower the discount rate and MLF.
In terms of investment, Gaud is optimistic about real estate, 5G-related technology stocks, and healthcare banquets, but the food and beverage sector is currently overvalued.