tobeymaguirepoker| Hang Seng Technology Index: Valuations are expected to rise, and science and technology companies welcome Davis 'double click

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Hong Kong stock market performs stronglyTobeymaguirepokerHang Seng Technology opened up by more than 2%. Technically, Hong Kong stock valuations and share prices are attractive. Societe Generale Securities Research expects the risk premium to fall, and Hong Kong stock valuations are expected to rise. In addition, monetary stability may support the rise of Hong Kong stocks.TobeymaguirepokerIs an important factor. In the context of loose real estate policy, economic recovery and increased confidence in foreign investment, science and technology stocks may usher in the dual growth of valuation and performance.

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The Hong Kong stock market performed strongly, with Hang Seng Technology and the two major ETF recording significant gains.

The Hong Kong stock market continued its strong performance today, with the Hang Seng Technology Index rising more than 2 per cent at the start of trading, while China General Interconnection ETF (513220) and Hong Kong Technology 50ETF (159750) also recorded more than 1 per cent gains during the session. Analysts believe that the rise in Hong Kong stocks is not a short-term phenomenon, the current Hong Kong stocks still have some upward space.

Both valuation and share price of Hong Kong stock are attractive, and the risk premium is as high as 89Tobeymaguirepoker.52%

From a technical point of view, after years of concussion and decline, the current valuations and share prices are already quite attractive. Take the global China Internet Index as an example, its current risk premium has reached 89.Tobeymaguirepoker.52%, indicating that the investment performance-to-price ratio of science and network equity assets is already quite high. Societe Generale Securities (601377) research predicts that the risk premium of Hong Kong stocks will fall in the next stage, suggesting that Hong Kong stock valuations are expected to usher in a rising market.

The chip game shows that there is still some room for Hong Kong stocks to go up.

The perspective of chip game also supports the upside potential of Hong Kong stocks. As of April 26, the proportion of funds not optimistic about Hong Kong stocks was 16 per cent, while historical data show that such funds accounted for about 10 per cent of every decent rebound in Hong Kong stocks over the past five years or so. This suggests that Hong Kong stocks may still have some upside at present.

The stability of monetary policy provides the strength for Hong Kong stocks to rise.

From a fundamental point of view, the stability of monetary policy may provide upward impetus for Hong Kong stocks. Due to the instability of US monetary policy, other currencies around the world have depreciated, while the renminbi, which benefits from an export-oriented economy, and the Hong Kong dollar, which benefits from the linked exchange rate system, have become "safe havens" for global capital. In addition, since 2024, the recovery of China's economy and consumption and the improvement of the policy environment have led to a difficult reversal in the fundamentals of Hong Kong stocks led by science and technology stocks.

Loose real estate policy boosted the economy and foreign confidence, and science and Internet stocks welcomed a double rise in valuation and performance.

Looking ahead, with the further loosening of China's real estate policy, the economy is expected to continue to recover and foreign confidence will become stronger. This may lead science and technology stocks out of the double-rising valuation performance of the "Davis double-click" market. Therefore, not only should investors not be in a hurry to leave, but should pay more attention and hold patiently.