Hong Kong stocks today see the new bottom of this year, driving towards 16000,19890 points, investor confidence is weak, but Fan Zhuoyun, chief investment officer of HSBC Global Private Banking and Wealth Management Asia, said that he will maintain a neutral view on Chinese and Hong Kong stocks next year, but believe that the worst time has passed, and the Hang Seng Index is expected to stabilize to 25,2025 points next year. She pointed out that the valuation of the Chinese and Hong Kong stock markets has been at a historical low, and the Hang Seng Index has limited room for further decline, and in the second half of next year, with global central banks, including the US Federal Reserve, expected to cut interest rates (25 basis points in the third and fourth quarters, and <> basis points in each of the first three quarters of <>), it is believed that it will bring good news to Hong Kong stocks.
Fan Zhuoyun said that the market is overly pessimistic about the mainland economy, and HSBC expects the mainland economy to grow by 5.2% this year, higher than the official target of 5%, and is also expected to grow by 4.9% next year.
She also pointed out that the mainland government's policy support for the economy is expected to be strengthened, focusing on the Central Economic Work Conference at the end of the year, which is expected to continue to support stable growth, and believes that the Hang Seng Index has limited room to fall.
Ho Wai-wah said that the weak domestic property market is not conducive to the mainland economy, and he maintains a neutral view on Chinese and Hong Kong stocks next year. (Photo by Lin Jingyi)
It is expected that interest rates will be cut again next year
Ho Wai Wah, chief investment officer of HSBC Global Private Banking and Wealth North Asia, said that the weak domestic property market is not conducive to the mainland economy, and he maintains a neutral view on Chinese and Hong Kong stocks next year, but is optimistic about some of the sectors, including retail and services. In terms of the mainland's monetary policy, it is expected to further cut interest rates and reserve requirements.
Looking ahead to the next six months, HSBC Global Private Bank will adopt a moderate risk-on investment strategy, reducing cash and overweight US Treasuries, global investment grade bonds and hedge funds, with a neutral allocation to global equities but a moderate overweight to the US, emerging Asia, particularly India, Indonesia and South Korea equities. The bank maintained a bullish view on the US dollar as higher real yields and outperforming growth in other advanced economies, as well as geopolitical uncertainty supporting safe-haven demand.