CITIC Securities: Hong Kong stocks officially enter the later stage of a bull market.

On June 5th, a research report from Huang Wentao and He Sheng's team at CITIC Securities pointed out that the current uptrend in Hong Kong stocks is being established. Since the end of March, CITIC Securities has been proposing opportunities for phased allocation of Hong Kong stocks, and Hong Kong stocks have gradually completed the phased bottoming out, forming a mid-term bottom after the TACO trading in April. CITIC Securities believes that the Hong Kong stock market is transitioning from the previous valuation and sentiment recovery stage to a new stage driven by profit verification and improved risk appetite. Looking at the overall cycle, Hong Kong stocks have moved out of the low valuation recovery stage since last year and officially entered the later stage of the bull market. This stage will no longer be a general rise in the index, but a structural main uptrend driven by profits, economic conditions, and industry realization. Liquidity and valuation recovery have already been realized to a large extent, and the core variable determining excess returns in the future will shift towards performance validation. The first quarter financial reports of leading internet companies have shown structural improvement, and the market's expectations for profit recovery in Hong Kong stocks are being rebuilt.