DBS Bank: Hong Kong stocks may be constrained by short-term liquidity tightening or entering a consolidation phase. Bullish on technology and non-bank sectors.

DBS Bank mentioned that due to local liquidity tightening in the short term and investors waiting for signs of stabilization in China's fundamentals, the Hong Kong stock market may enter a consolidation phase in the short term, but still remains attractive in the long term. May Yu Wah, Director of DBS Hong Kong Research Department and Stock Market Strategist for Hong Kong and China, stated in a media briefing that it is difficult for local liquidity to further improve in the short term, and the southbound funds that drove the market up at the beginning of the year have recently slowed down. Some investors are expected to focus back on the mainland market. The highlight is the influx of foreign funds, with continuous inflows of passive funds and a small amount of active funds returning to Hong Kong stocks starting last week. They remain optimistic about technology and non-bank financial stocks, and believe that China's measures to combat internal competition will bring trading opportunities. It is expected that the Hang Seng Index will fluctuate around 25,000 points in the near term, with a target point of 26,000 points in the next 12 months.