Hong Kong Stocks Open | Hang Seng Index Down 0.69% at Opening, Oil and Gas Sector Strong, Tech Stocks Weaken Collectively

On March 12, the Hang Seng Index opened 0.69% lower, and the Hang Seng Tech Index fell by 0.6%. In the market, the oil and gas sector showed strength, with Shandong Molong up more than 14% and Zhonggang Petroleum rising over 8%; technology stocks collectively weakened, with Alibaba falling nearly 2%.

Regarding the future outlook for Hong Kong stocks

Guosen Securities believes that the current economic cycle is at a juncture of recovery opportunities intertwined with geopolitical disturbances, and Hong Kong stocks are focused on liquidity and earnings bottom. At present, the Hang Seng Index’s earnings continue to be revised upward, while the valuation of the Hang Seng Tech Index has reached its lowest point. Following the resumption of share buybacks after annual reports and the catch-up effect of major firms in AI, a rebound driven by liquidity and earnings bottom is worth expecting.

Industrial Securities stated that the AI sector has sparked a “lobster-farming” trend, with multiple large technology firms launching one-click deployment capabilities and releasing similar products. The emergence of phenomenon-level products is effectively boosting the prosperity of the AI industry. Domestic large models, with higher cost-performance, are continuously gaining traction. Subsequently, there is hope for demand-driven computing power (core stocks) and further promotion of the virtuous cycle of AI democratization. It is recommended to increase investment allocation in this sector.

Aiju Securities stated that foldable smartphones (core stocks) represent a core innovative category within the smartphone field, with hinges and flexible display modules as key components, effectively balancing the core contradiction between large-screen experience and device portability. Under optimistic forecasts, Apple’s foldable smartphone sales could reach 14 million units by 2026. Given iPhone’s premium positioning and substantial sales volume, it is expected to drive the entire industry chain towards a high-speed development inflection point.

This article is reproduced from Tencent’s self-selected stocks, edited by Chen Wenfang from Zhitong Finance.