China-Hong Kong Stocks Offer Buying Opportunity This Quarter; Tech Rebound Expected
On.cc · 1 SOURCESabout 4 hours ago5 MIN
Summary
Global equity markets have entered the fourth quarter, with investor focus shifting to corporate earnings, U.S. interest rate trajectories, and year-end capital deployment strategies. In an exclusive interview, Hong Hao, Chief Investment Officer and Managing Partner at Lianhua Asset Management, stated that China and Hong Kong stocks are expected to show resilient performance during October and November . The strategist cited three key factors supporting this outlook: interest rate hike expectations have already been fully priced into markets, excessive bearish sentiment may paradoxically drive an upward reversal, and China is likely to introduce additional economic stimulus measures .
Key Points
- Hong Hao (洪灝), CIO at Lianhua Asset Management, recommends investors adopt the "be greedy when others are fearful" approach for current market conditions
- China's commercial personal housing loan subsidy policy took effect from October 1, representing one of the recently intensified property market support measures
- Internal tax increases and wealth taxation have caused fiscal tightening and capital outflows, representing the biggest domestic economic change this year
- Hong Kong tech stocks, particularly software-focused companies, are expected to lead market recovery as the Hang Seng Index benefits from improved sentiment
- The Nasdaq Composite Index is likely to break its September 22 record high of 27,288 points, driven by strength in technology and semiconductor sectors
- Hong Hao maintains a bullish stance on Renminbi appreciation and expects Brent crude to trade between $90-120 per barrel
Why It Matters
For Hong Kong investors, the convergence of exhausted selling pressure, anticipated policy support for the property sector, and potential leadership from tech stocks creates a compelling tactical window to re-evaluate China exposure. The discrepancy between extreme bearish positioning and improving policy backdrop suggests asymmetric upside risk that could reshape portfolio allocations heading into year-end .
For Hong Kong investors, the convergence of exhausted selling pressure, anticipated policy support for the property sector, and potential leadership from tech stocks creates a compelling tactical window to re-evaluate China exposure. The discrepancy between extreme bearish positioning and improving policy backdrop suggests asymmetric upside risk that could reshape portfolio allocations heading into year-end .