At the beginning of the week, Hong Kong stocks experienced a sharp downturn
On Friday, they were fortunate enough to regain lost ground. In the short-term, they have the opportunity to return to stability. However, if the political problems cannot be resolved, the funds will continue to flow away, and the valuation will have room for downward adjustment. Should be short-lived.
Hong Kong office rentals are affected
In the whole July-August downturn, MSCI Hong Kong’s decline was particularly large, with banks and real estates losing the most. The most affected sectors were of course local property stocks. Hong Kong was the meeting point for Chinese and Western cultures. Choosing Hong Kong as a springboard to enter China, China will also use Hong Kong as a base for international business. Under the political shock, when the business lease expires, the business environment will be re-examined. The rent and vacancy rate in one or two years may not be affected. However, if the situation is not properly handled, the next lease will be the rent increase or the renewal rate. There is a possibility of a big drop, and the impact of the office market will be far-reaching.
On the other hand, many countries have issued travel warnings to Hong Kong
The retail market is believed to have a cliff-like decline. The income prospects of retailers to collect rents cannot be seen too well.
If you want to count the strong sectors, the strongest must be Chinese consumer stocks. In the whole downturn, the A-share resilience itself is better than the Hong Kong stocks. Among them, the consumer stocks are strong, and some liquor stocks even hit new highs. Hong Kong’s beer stocks can also outperform the market challenge. Therefore, on the stock picking, if you want to spend more time, you must choose the most unaffected Chinese consumer stocks.
Of course, there will be occasional shares such as Ausnutria Dairy (01717), which are attacked by short-selling institutions, and the stock price fluctuates greatly. However, from the medium to long-term perspective, as long as the price is spread, the risk will not be too high. Moreover, other dairy companies have not If there is a fall, it can be proved that the medium and long-term line is still a value-based strategy as long as it is reasonably dispersed.