Ba Ling: The rate cut by the Federal Reserve will help funds flow back into Hong Kong stocks. Optimistic about consumer technology stocks.

2024-03-25 14:16

Zhitongcaijing
Hong Kong stocks traditionally tend to be weaker in the second quarter, but as long as the Federal Reserve starts to cut interest rates, it will help money flow back into Hong Kong stocks. I am optimistic about consumer-focused technology stocks rather than gaming stocks.
As the second quarter approaches in the Hong Kong stock market, Fang Weichang, director of investment in China and Hong Kong for Pilatus Wealth Management, pointed out that traditionally the second quarter is weak for Hong Kong stocks. However, with the Federal Reserve getting closer to cutting interest rates, and Hong Kong stocks still relatively sluggish, even if the Federal Reserve cuts interest rates two times instead of three, it will help to attract funds back to Hong Kong stocks. He also believes that after the market adjusts the guidance on mainland Chinese stocks lower, the performance of the companies that have recently released their earnings reports have generally met expectations, and some stocks have seen increases after stock buybacks and privatization news, leading to an improved investment atmosphere in the Hong Kong stock market. If no major adjustments occur in the second quarter, the performance will be better than in the past. As for technology stocks, Fang Weichang stated that the sector's performance is generally "satisfactory", and is using buybacks and dividends to increase market confidence. Due to expectations of stable consumer performance in mainland China this year, he is relatively more optimistic about consumer-focused technology stocks rather than game-focused ones.