Huafu Securities believes that the recent strong performance of Chinese assets represented by Hong Kong stocks is the result of multiple factors working together. On the one hand, frequent favorable policies domestically have greatly boosted market confidence; on the other hand, the Fed's interest rate cut in September has made the global liquidity environment marginally looser. In the early stages of the Fed's rate cut, global equity markets often benefit from the denominator logic and generally perform well.
TF Securities stated that compared to global markets, Chinese assets still offer good value for money.
Based on the gradual recovery of expectations and the anticipation of gradual improvement in fundamentals, Hong Kong stocks and Chinese concept stocks still have attractive valuations and high risk-return ratios.
Fredrik Bjelland, portfolio manager of the emerging market fund Skagen Kon-Tiki, said, &#34;There is still a long way to go for the rebound, and China's valuation is very attractive. In addition, compared to history, global investors have very light positions.&#34; Laura Wang of Morgan Stanley said that with the Chinese government possibly announcing fiscal measures to boost the already announced stimulus plan, the Chinese stock market may rise by another 10% to 15%.
Huafu Securities believes that domestic semiconductor equipment and component manufacturers, relying on their own product competitiveness and capabilities such as category expansion, are expected to continue to benefit from the expansion of the semiconductor market and the deepening of domestic substitution processes. The growth speed and space may be very significant, and it is recommended to focus on semiconductor equipment and components. Investors can use semiconductor ETFs for one-click layout.
With the steady recovery of the macro economy and continuous policy support, the semiconductor industry, after experiencing a period of poor performance in the industry cycle, is now experiencing a significant performance turnaround.
Geng Zheng, Chief Analyst of the Electronic Industry at GF Securities, told Shanghai Securities News on September 18 that the domestic semiconductor equipment market has vast space.
Against the backdrop of continued expansion of liquidity in A-shares and Hong Kong stocks, the domestic semiconductor sector may see valuation recovery.
Companies in the chip and related industry chain:
SMIC (00981), HUA HONG SEMI (01347), NIO (03898), ASMPT (00522), Shanghai Fudan (01385), etc

688347

01347

688981

00981

Against the backdrop of increasing liquidity in the A-share and Hong Kong stock markets, the semiconductor sector may see a valuation recovery. Huafu Securities pointed out that Chinese assets are cost-effective in the global market, benefiting from domestic policies and the Fed's interest rate cuts. Investors can focus on domestic semiconductor equipment and component manufacturers, with the industry expected to experience significant performance turnaround. Relevant companies include SMIC, HUA HONG SEMI, and others

- Huafu Securities attributes the recent strong performance of Chinese assets, particularly Hong Kong stocks, to multiple factors, including frequent domestic policy support and a more accommodative global liquidity environment following the Federal Reserve's rate cut in September.  
- Tianfeng Securities notes that Chinese assets currently offer good value compared to global markets, with Hong Kong and U.S.-listed Chinese stocks remaining attractive due to improving expectations and high risk-return ratios.  
- Analysts suggest that the semiconductor sector, supported by domestic manufacturers and ongoing macroeconomic recovery, is poised for significant growth, with potential for valuation recovery in the A-share and Hong Kong markets.

Zhitong

Hua Hong

HUA HONG SEMI

SMIC

Hong Kong Stock Concept Tracking | Chinese assets currently have global cost-effectiveness, domestic semiconductor chips welcome valuation repair (with concept stocks)