Hong Kong stocks into the "value of the depression" new track, these assets are worth focusing on→

The Hong Kong stock market in 2025 stands at the intersection of historic opportunity and structural change.

After several years of volatile adjustments, against the backdrop of increased volatility in the global capital markets and a sustained low interest rate environment, Hong Kong stocks have been able to capitalize on the "Low valuation + high dividend + growth potential"The composite advantage of beingFunds are competing for the layout of the "value of the depression".

#01

Hong Kong Stocks: The Time to Dig for Gold

Since the beginning of the year.The Hang Seng Index accumulated a gain of 18.2%(math.) genusTechnology, Consumer, High Dividend SectorsTaking turns leading the charge.Cumulative southbound fund inflow of HK$6,039 during the yearForeign investment has also shifted from "underweight" to "overweight".

Source of data: Go-Goal

The driving logic of this round stems from both theChina's AI tech breakthroughs, consumer recovery policies add upThe restructuring of earnings expectations brought about by also benefited from theGlobal liquidity rebalancing under the Fed's rate-cutting cycleThe boost.

Meanwhile.The Hong Kong IPO market is back in full swing.Ningde Times, Auntie Shanghai and other giants pile up to hand in their forms, and the size of the single-day capital freeze has repeatedly exceeded HK$1,000 billionThe

May 20 Ningde Times listed on the Main Board of the Hong Kong Stock Exchange

In terms of valuation, the current price-to-earnings ratio (TTM) of the Hang Seng Index is about 10.32 times, which is a significant valuation advantage when compared to major global markets (e.g., U.S. and Japanese stocks).Sufficient margin of safety.The price-to-earnings ratio of the Hang Seng Technology Index is also at an all-time low.Attract long-term capital layout.
#02

Which assets in Hong Kong stocks are worth focusing on?

Hong Kong Stocks Technology, Innovative Pharmaceuticalsetc. are to cultivate the important direction of the new quality of productivity, and more A-share assets of the same kind have a certain degree of scarcity, but need to pay attention to the high growth accompanied by high volatility attributes, in the investment process need to be prepared to withstand the phases of larger fluctuations.

Dividend assets have "debt-like" propertiesThe high dividend yield protection allows for a relatively lower level of asset volatility, making it more suitable for an underlyer allocation.

Hong Kong stocks and technology

Hong Kong stock technology assets and A-shares complement each other.A number of high-quality Internet platforms and technology companies have chosen to list in Hong Kong due to the advantages of the flexible listing rules, the convenience of international financing, the efficiency of listing and the convenience of subsequent financing.

China's tech assets are seeing a revaluation.As an offshore market, Hong Kong stocks have advantages in terms of capital flow, and Hong Kong stocks have a higher degree of internationalization of the revenue of technology companies, which has become a strategic place for foreign investors to lay out China's core technology assets.

Hong Kong's technology valuations are highly attractive.The price-to-earnings ratio of the Hang Seng Technology Index is also at a historic low, attracting long-term capital.

There are still a large number of quality technology companies that may go public in Hong Kong in the future.Recently, Hong Kong Exchanges and Clearing Limited (HKEx) and the Securities and Futures Commission (SFC) formally launched the "Technology Company Line" to facilitate the listing of specialized technology companies and biotechnology companies in Hong Kong.

Hong Kong Stocks Innovative Drugs

Hong Kong stocks have brought together a number of high-quality Biotech companies that are scarce in A-shares.The Hong Kong stock market allows unprofitable biotech companies to list through Rule 18A, and many innovative drug leaders have realized listing in Hong Kong stock market through the reform of the system.

Domestic innovative drug companies going overseas have entered the harvest period, and the fundamentals continue to be realized.China's innovative drugs have been increasing their position in the global BD market, and the number and amount of innovative drug projects going overseas have reached record highs.

Hong Kong Stocks Innovative Pharmaceutical CompaniesValuations are still at the bottom of the historical range.

Policy efforts continue to increase, the potential catalyst is worth looking forward to.In 2024, the country introduced a new policy to clarify the pricing protection mechanism for innovative drugs, and the policy orientation shifted from "cost control-oriented" to "encouraging innovation".

Hong Kong stock dividend

Hong Kong stock dividend assets have a dividend yield advantage over A-shares.There is a long-term liquidity discount in Hong Kong stocks, and the dividend yield of the Hong Kong dividend index is generally higher than that of the A-share dividend index.

Risk-free rates continue to fall and the attractiveness of high-dividend assets continues to rise.Compared to the 10-year Treasury yield of 1.64%, the HFT High Dividend Index's dividend yield of 8.90% puts the risk premium at an all-time high of 91.04%. (Source: wind, data as of 2025.05.09)

Asset drought and system-driven demand for incremental capital allocation by insurers is strong.Insurers will need to find alternative assets as long bond yields continue to fall and non-standard assets mature.

Hong Kong Stock Trials -Technology, Innovative Pharmaceuticals, and Dividends, which represent growth, policy dividends and defense, respectively.A combination of both "offense and defense" allocations.

Under the resonance of policy support, capital inflows and valuation repair, theThe attribute of "value depression" of Hong Kong stocks will be further emphasized.It has become the core battleground for global capital to layout Chinese assets.

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