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Ping An Securities Expects HK Stocks to Remain in Oscillating Mkt Tone, Calls for Attention to Internet/ Consumption/ Independent & Controllable High-end Mfg/ Benefit Sectors
Looking ahead to February, the high-frequency and leading economic indicators in mainland China shows a seasonal drop in production and a slowdown in the pace of recovery of econom...
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Ping An Securities Expects HK Stocks to Remain in Oscillating Mkt Tone, Calls for Attention to Internet/ Consumption/ Independent & Controllable High-end Mfg/ Benefit Sectors
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Positive
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44
 
 

Looking ahead to February, the high-frequency and leading economic indicators in mainland China shows a seasonal drop in production and a slowdown in the pace of recovery of economic fundamentals, Ping An Securities issued its monthly multi-asset report saying.

The announcements of the tariff hike by US President Donald Trump and China's countermeasures at the beginning of February represented the first signs of the tariff game between China and the US, while the related policy changes will continue to affect China's capital market.

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Looking ahead to February, Ping An Securities expected that the tone of an oscillating Hong Kong equity market will remain unchanged, and suggested that investors can pay attention to the rebound opportunities post holiday.

In the short term, with a window period of domestic economic policy, overseas interest rates may remain high and oscillating, and Trump's policies like tariff are still uncertain. The market's cautious sentiment may constrain further gains in Hong Kong stocks.

In terms of structural allocation, the broker recommended investors to pay attention to three 3 main lines, naming the internet sector, where demand is picking up again after supply is cleared out with stable earnings trend, and the direction of policy support and industrial restructuring, including consumption, the overseas expansion of mid-range manufacturing industry and independent & controllable high-end manufacturing industry, as well as benefit, i.e. the strength of 2025 fiscal policy. Big financial sector in the dividend sector may have more prominent opportunities, especially for the insurance sector, which may benefit from the steepening domestic interest rate curve.

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