Hong Kong Stocks Open | Hang Seng Index Up 0.41% at Open, Lithium Mining Stocks Strengthen, Tech Stocks Show Mixed Performance
The Hang Seng Index opened 0.41% higher, and the Hang Seng Tech Index rose 0.61%. On the market, lithium mining stocks performed strongly, with Tianqi Lithium Corporation rising 2.19% and Ganfeng Lithium increasing by 1.84%. The performance of technology and internet stocks diverged, with Meituan up 1.46%.
Regarding the future outlook of Hong Kong stocks
CMB International Securities stated that the recent weakness in Hong Kong stocks is due to the repatriation of southbound funds to the A-share market as a result of new regulations on public fund benchmarks, along with crowding-out effects, concerns over an IPO financing wave, the arrival of a peak in share lock-up expirations, downward revisions in earnings, and disruptions from overseas liquidity. Looking ahead, as southbound capital flows stabilize, crowding behavior diminishes, pressures from IPO supply and lock-up expirations ease temporarily, earnings recover, and overseas liquidity improves, Hong Kong stocks are expected to benefit from a year-end rally.
SPDB International noted that, in the short term, the market is expected to maintain a volatile trend, with shifts in style and investment themes likely to occur. The lack of new catalysts in the short term, coupled with uncertainties surrounding potential interest rate cuts by the Federal Reserve next year, will impact external liquidity. This may lead to more concentrated allocation of incremental funds towards scarce assets, while limited room for valuation expansion will exacerbate market fluctuations. Consequently, performance in terms of earnings is more likely to dictate market trends. For short-term investment strategies, it is recommended to adopt a balanced approach; the ‘technology + dividend’ barbell strategy remains effective.
China Construction Bank International advised taking advantage of dips to accumulate positions before the end of 2025, preparing for the spring rally at the beginning of next year, and gradually adopting a more aggressive stance starting in early 2026. A foundational allocation in high-dividend stocks is recommended, with a focus on new productivity drivers and structural reform themes. Selective investments should target technology, advanced manufacturing, hydrogen and nuclear energy, other new energy sectors, and domestic demand stocks (such as consumer goods and services).
This article is reprinted from Tencent Self-Select Stocks, edited by Chen Wenfang of Zhitong Finance.
