Morgan Asset Management: Overseas investors are optimistic about the prospects of Hong Kong stocks, and foreign capital may gradually absorb Hong Kong stocks
The Hang Seng Index rose 1,012 points last week. Xu Changtai, Chief Market Strategist for Morgan Asset Management in the Asia-Pacific region, believes this reflects overseas investors' optimism about the market outlook. Moreover, Hong Kong stocks have outperformed U.S. stocks this year, and foreign capital may gradually absorb Hong Kong stocks to avoid further "beatings." He is optimistic about the market's prospects until the end of next year, but the index has risen for five consecutive months, which may lead some investors to reallocate their portfolios, increasing the likelihood of profit-taking opportunities and making the current risk-reward ratio less attractive. He suggests that there is no need to rush into the market. Xu noted that recently, the sell-side has generally raised investment recommendations for technology stocks, indicating that the industry's development is promising. Additionally, major U.S. tech companies are heavily investing in data centers and power plants, leading the market to anticipate similar development opportunities in China, which is beneficial for the entire AI supply chain. However, he admitted that new consumer stocks in the Hong Kong A-share market have accumulated significant gains, leaving little room for short-term speculation. Investors may also pay attention to other Asian markets, such as Taiwan. Furthermore, the election of a new prime minister in Japan may have important implications for the Japanese stock market. He expects that the U.S. government shutdown will have limited direct impact on the U.S. stock market, and other data has shown a weakening labor market, with a high likelihood of a Federal Reserve rate cut in October
According to the Zhitong Finance APP, the Hang Seng Index rose by 1,012 points last week. Xu Changtai, Chief Market Strategist for Asia Pacific at Morgan Asset Management, believes this reflects overseas investors' optimism about market prospects. Additionally, Hong Kong stocks have outperformed U.S. stocks this year, and foreign capital may gradually absorb Hong Kong stocks to avoid further "beating." He is optimistic about the market outlook until the end of next year, but the index has risen for five consecutive months, which may lead some investors to reallocate their portfolios, increasing the likelihood of profit-taking opportunities, making the current risk-reward ratio less attractive, and he suggests that there is no need to rush into the market.
Xu Changtai stated that recently, the sell-side has generally raised investment recommendations for technology stocks, indicating that the industry's development is promising. Coupled with major U.S. technology leaders investing in data centers and power plants, the market anticipates similar development opportunities in China, which is beneficial for the entire AI supply chain.
However, he admitted that new consumer stocks in the Hong Kong and A-share markets have accumulated significant gains, leaving little room for short-term value play. Investors can also pay attention to other Asian markets, such as Taiwan. Additionally, the election of a new prime minister in Japan may provide important insights for the Japanese stock market.
He expects that the U.S. government shutdown will have limited direct impact on the U.S. stock market, and other data has shown a weakening labor market, with a high likelihood of a Federal Reserve rate cut in October
