Huatai Securities Strategy: Hong Kong stock market has strategic allocation value, expected to outperform.

Huatai Securities' 2025 Mid-term Investment Summit "Seeking Certainty under Order Reconstruction" was held in Shanghai on June 4th. Huatai Securities' strategic viewpoint believes that the Hong Kong stock market has strategic allocation value in the medium to long term. The Hong Kong stock market serves three important functions: facilitating overseas expansion for companies, attracting capital inflows, and promoting the internationalization of the Renminbi. In the second half of the year, the driving factors for the Hong Kong stock market will mainly come from profit growth. Market volatility may still be high in the third quarter, with high dividend yield sectors and essential consumption as potential core holding allocations. Looking at the whole year, it may be appropriate to increase allocation to technology and consumption on dips, while large financial institutions should still be considered as core holdings.