Great Wall Fund Qu Shaojie: Medium to Long-term Allocation Value of Hong Kong Stocks Stands Out, Two Key Directions Worth Focusing On

Recently, Qu Shaojie, Deputy General Manager of Great Wall Fund’s International Business Department and Fund Manager, shared his latest views on investing in the Hong Kong stock market. He pointed out that the current Hong Kong stocks show significant structural differentiation. Short-term international geopolitical disturbances do not change the medium- and long-term allocation value. In the future, focus should be on value sectors and technology leaders with solid earnings.

Qu Shaojie analyzed that since 2026, most sectors in Hong Kong stocks have performed well, but investor perception remains weak, mainly due to the high weighting of the technology sector and noticeable pullbacks dragging down overall experience. In fact, non-technology Hong Kong stock funds have delivered good returns, and value stocks are in a four-year “slow bull” market. Overall, Hong Kong value stocks have solid fundamentals, steady trends, and significant high-dividend advantages, making them favored by global institutions. Their medium- and long-term allocation highlights value, contrasting sharply with the previously adjusted technology sector.

He also emphasized that the fundamentals of Hong Kong tech stocks are not poor. The recent weakness is mainly due to concerns over increased capital expenditure driven by AI, but the medium- and long-term investment outlook remains optimistic. The Hang Seng Tech Index’s recent correction started in October 2025, with a decline of over 25%, indicating a relatively thorough adjustment. Mainland Chinese tech giants remain key traffic gateways, with strong and growing net profits, strategic value, and traffic barriers, highlighting their long-term value.

Regarding the impact of international geopolitical situations, Qu Shaojie stated that conflicts in the Middle East have disrupted shipping through the Strait of Hormuz, pushing up oil prices and global inflation, delaying U.S. rate cuts, and causing short-term liquidity fluctuations in Hong Kong stocks. However, these are not due to deteriorating fundamentals. China’s stable environment and surrounding regions provide solid support for Hong Kong stocks. Southbound funds through the Stock Connect continue to flow in significantly, with net inflows of about HKD 800 billion in 2024, reaching HKD 1.4 trillion in 2025, and expected to continue in 2026, so liquidity concerns are unnecessary. Amid rising global uncertainties, Hong Kong stocks’ valuation and dividend advantages stand out, and they are likely to continue attracting domestic and foreign institutional funds.

Regarding the impact of earnings season on stock selection, Qu Shaojie pointed out that Hong Kong stocks are mainly driven by institutional investors, who are highly sensitive to performance, with stock prices closely linked to fundamentals. His stock selection focuses on leading companies with stable earnings and reasonable valuations, rarely engaging in pure concept investments. He emphasizes high and stable gross profit margins, reflecting operational barriers that support higher net profit margins and shareholder returns.

Disclaimer:

The information contained in this communication is sourced from channels and analysts deemed reliable by our company, but we do not make any explicit or implicit representations or guarantees regarding its accuracy or completeness. This communication does not constitute a full statement or summary of relevant securities or markets, and any opinions expressed may change without prior notice. It should not be used as a substitute for independent judgment or investment decision-making. Our company, its affiliates, employees, or agents are not responsible for any actions taken based on this content or any resulting losses. Without prior written permission from Great Wall Fund Management Co., Ltd., no part of this report may be distributed, copied, reposted, or published in any form, nor may it be altered or edited in a way that contradicts its original intent. The fund manager reminds that every citizen has the obligation and right to report money laundering crimes. All citizens should strictly comply with relevant anti-money laundering laws and regulations. The market carries risks; investments should be cautious.

MACD Golden Cross Signal Formed, These Stocks Are Showing Good Momentum!

Massive information, precise analysis, all on Sina Finance APP

Editor: Shi Xiuzhen SF183