Hong Kong stocks under pressure awaiting recovery, Galaxy optimistic about a dual-arrow strategy focusing on technology and consumer sectors

Against the backdrop of weakening expectations of Federal Reserve rate cuts, Hong Kong stocks have recently faced significant external liquidity pressures. Galaxy Securities’ latest analysis indicates that in the short term, Hong Kong stocks will seek a balance between international capital outflows and domestic policy support, requiring investors to choose sector directions more precisely.

Technology Sector: Structural Opportunities Driven by Industry Upgrades

Galaxy Securities believes that the technology sector warrants focused allocation. The sector is experiencing multiple positive factors resonating simultaneously: upstream industrial chain costs are gradually easing, listed companies are increasing M&A and restructuring activities, and the process of domestic substitution is accelerating. These factors collectively support a medium-term upward space for tech stocks. Although short-term volatility is inevitable, the overall trend remains relatively clear.

Consumer Sector: Policy Benefits and Valuation Gaps

Consumer stocks are also worth attention. Currently, the consumer sector is under policy support, and stock valuations remain relatively low, leaving ample room for medium- to long-term capital entry. Compared to other sectors, consumer stocks may have more promising rebound potential.

Non-Ferrous Metals: Cyclical Opportunities from Geopolitical Factors

Influenced by international geopolitical situations, the non-ferrous metals sector has increased volatility, but changes in supply-side expectations also create allocation opportunities. Galaxy recommends that investors should not completely avoid this sector.

Overall, in an environment where external liquidity is under pressure, selecting structural opportunities and diversifying sector allocations are key strategies for investing in Hong Kong stocks.