Hong Kong Stocks: Domestic Capital Clings to Dividends and Technology

The Hong Kong stock market has rebounded strongly since mid-January, with trading volume approaching historical records. Southbound capital inflows are mainly concentrated in the technology and financial sectors. Guotai Junan International Strategy points out that Hong Kong stocks are reasonably valued, with the Hang Seng Index PE-TTM at approximately 10.5 times, lower than the average over the past 10 years. In the short term, policy expectations and improvements in overseas tariffs support the market, and breakthroughs in the AI field also drive the market. The proportion of foreign capital allocation is low, and as the main industry line becomes clear, investor sentiment will turn optimistic, making Hong Kong stocks highly valuable for allocation