HK - Market Strategy 03 (Dec 17 - Apr 25)

[winston]

<Research>Ping An Securities: HK Stocks in Period of Oscillatory Adjustment;
Mkt Pays Attention to Trump Reciprocal Tariffs/ Policy Signals from Politburo Meeting in Apr

The policies of the Two Sessions in early-March positively boosted the sentiment of Hong Kong stocks, but the volatility of Hong Kong stocks increased since the middle of March, with the profit arbitrage caused by the announcement of the financial reports of the leading technology companies, as well as the stabilization of US stocks attracting the return of some foreign capital, Ping An Securities issued a report saying.

Since the middle of March, XIAOMI-W (01810.HK), TENCENT (00700.HK), MEITUAN-W (03690.HK) and PDD Holdings (PDD.US) issued their 2024 financial reports successively, and the tech leaders' results were impressive.

However, partly due to the profit arbitrage post-results and TENCENT's relatively conservative capital spending plan, the market sentiment dropped.

Looking ahead to April, Ping An Securities added that Hong Kong equities are in a period of oscillatory adjustment after valuation repair.

The market continues to wait for new catalysts, and pays attention to Trump's tariff policy disturbances as well as policy signals from the meeting of the Political Bureau of the Central Committee in April.

Of which, Trump's reciprocal tariff plan will be launched in April, while Scott Bessent said that the tariffs previously levied on China (20%) and steel and aluminum (25%) will be counted in the reciprocal tariff rate.

Therefore, China may not be overly targeted under the reciprocal tariff framework, but, it is still necessary to pay close attention to the changes in Trump's tariff policy, and the impact of the non-tariff barriers that are more difficult to quantify on the formulation of the ultimate tariffs can not be ruled out.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

China/HK Market Strategy: FY24 results: Improving earnings and business confidence

CN/HK stocks saw fewer misses in FY24 results season compared to 1H24

More managements turned optimistic on business outlook

Results season outcome enhances CN/HK’s relative appeal vs. other markets

Reiterate our positive stance on market and preference for tech sectors

Source: DBS

https://www.dbs.com/insightsdirect/coun ... ecid=24633