CICC: Hong Kong stock market is expected to achieve mean return in the second half of the year

Xinhua News Agency, June 13, China International Capital Corporation believes that looking forward to the second half of 2023, we believe that the Hong Kong stock market is expected to achieve a "mean return" to a certain extent, but before the emergence of real growth "grab", it may be an equilibrium at a relatively low level. Overall, we expect the MSCI China and Hang Seng indices to rise by 10-15 per cent at current levels, mainly driven by a 7 per cent profit contribution and a 2-8 per cent valuation fix. It is recommended to allocate some high-dividend state-owned enterprises (telecom operators), public utilities, information technology (software and semiconductors) and health care, and maintain standard allocation for the overall large finance, real estate, essential consumer goods, automobiles, etc. On the contrary, it takes a cautious view on some upstream demand and real estate pulling raw materials and industry.