Rate Of Return
NVIDIA Return Rate$Lion-OCBC Sec HSTECH S(HST.SG)
Ticket: HST (SGX)
Index Tracked: Hang Seng Tech Index (30 largest HK-listed China tech companies)
Top exposures: Tencent, Alibaba, Meituan, Xiaomi, JD, NetEase, SMIC
Structure: HST is a pure CN new-economy/platform -tech + AI + EV supply chain proxy
Key cyclical drivers:
(1) Fed easing -> weaker USD -> global capital flow into HK/China assets; if USD doesn't weaken -> capital stays in US assets & HST rallies tend to fail/stall
(2) Earnings normalisation after deep margin compression
(3) CN tech trading at much lower multiples -> Valuation gap Vs US tech remains wide
Outlook:
Near term - consensus is that Fed easing is off the table but earnings has some positives (e.g. Tencent). A large green candle with relatively high volume on 2 June is a promising sign for a possible reversal but we have to see if prices can hold for the next few session.
I am currently holding/accumlating this as a satellite growth allocation, pending re-rating/mean reversion of the Chinese tech.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
