Institutions say that Hong Kong stocks have moved out of the low valuation repair stage and have officially entered the mid-to-late stage of a bull market, focusing on opportunities in the Hong Kong stock sector.

On April 1st, Hong Kong stocks opened higher, with the Hang Seng Index up 2.3% and the Hang Seng Tech Index up 2.75%. In the market, popular tech stocks generally rose, with Zhipu up 15%, NIO up over 6%, SMIC and Tencent Holdings up over 4%, Bilibili and Pop Mart up nearly 4%, Baidu Group, Kuaishou, and Alibaba up over 3%. Regarding popular ETFs, Hang Seng ETF Huaxia (159920), Hang Seng State-owned Enterprise ETF Huaxia (159850), and Hang Seng Tech ETF Huaxia (513180) all increased by nearly 2%.

CITIC Construction Investment analysis states that the core reasons for the Hong Kong stock adjustment over the past three months are threefold: First, liquidity expectations have tightened, with the Federal Reserve’s leadership change and rising US re-inflation expectations, leading the market to lower rate cut expectations. US bond yields and the US dollar index have strengthened, suppressing valuations in offshore markets like Hong Kong stocks. Second, geopolitical and foreign capital risk aversion: escalating Middle East conflicts have pushed up oil prices and inflation concerns, global risk aversion has increased, and foreign capital has concentrated on reducing risk exposure in the Asia-Pacific markets, highlighting outflows from Hong Kong stocks. Third, trading structure congestion: earlier, funds crowded into the tech and internet sectors, leading to high congestion levels. Under external disturbances, profit-taking and de-risking occurred first, creating short-term negative feedback, which is a chip-level adjustment rather than a deterioration of fundamentals.

From a long-term perspective, Hong Kong stocks have exited the undervaluation repair phase and have officially entered the mid-to-late stage of a bull market. The previous trend of unilateral gains has ended, and the subsequent market will shift toward profit-driven structural differentiation, with performance and economic outlook becoming the core stock selection criteria. A layered trading strategy is recommended to adapt to oscillating upward trends: use the current low valuation to preemptively allocate in batches to core leaders and lock in chips; wait for performance realization and external shocks to ease before increasing positions; use pullbacks to seize opportunities created by risk events for contrarian deployment, strictly control positions, and balance offense and defense to avoid emotional trading.

Notable targets to watch:

Core broad-based Hong Kong stocks: Hang Seng ETF Huaxia (159920)

AI + platform economy: Hang Seng Tech ETF Huaxia (513180)

Core consumer assets in Hong Kong stocks: Hong Kong Stock Connect Consumer ETF Huaxia (513230)

Global pharmaceutical industry chain representative: Hang Seng Pharmaceutical ETF Huaxia (159892)

Chinese AI technology concept companies: Hang Seng Internet ETF Huaxia (513330)

Daily Economic News