HSBC has a positive outlook on Hong Kong stocks this year, favoring AI-related hardware and the gaming industry

HSBC Securities' Head of Strategy for the Asia-Pacific region, Lin Chuan Ying, stated in an online conference that he holds a positive view on the Hong Kong stock market, benefiting from the continuous improvement in corporate earnings and the ongoing inflow of southbound funds.

He mentioned that the local property market is showing signs of a slow recovery, providing support for real estate stocks, with the residential market recovering most noticeably, and the office market also showing signs of stabilization. The retail market has improved compared to 12 months ago.

The bank's preferred industries and sectors this year include AI-related hardware and gaming, due to their strong growth momentum, but they are relatively pessimistic about pure e-commerce companies.

The bank also favors power equipment stocks, as large-scale national power infrastructure construction in China is accelerating, presenting long-term structural opportunities. Wind power and mining also benefit from energy transition and infrastructure demand. Overall, consumer stocks have performed moderately, but high-end consumption and luxury goods still have good potential