According to insights from the Bright Smart Securities Financial (01428) investment forum, the Hong Kong stock market is anticipated to see improvement following its mid-year review, with the Hang Seng Index potentially climbing back to a range of 25,500 to 26,000 points.
Firm confidence was expressed in the outlook for artificial intelligence-related sectors.
For new share listings, a strategy of applying jointly with family and friends was suggested to enhance the probability of successful allotment.
It was also noted that futures contracts on US individual stocks are scheduled for launch in the summer, allowing trading during Asian hours with a 15% margin requirement.
During the first half of the year, market themes in Hong Kong were concentrated on AI large language models, AI hardware, memory chips, and optical communications.
Investors were advised to diversify their holdings by using instruments like bull and bear contracts or warrants to avoid excessive concentration of capital.
Bright Smart Securities' Executive Director and Co-Chief Executive Officer, Xu Yibin, commented that while new listings showed strong first-day performance in the first half, securing an allotment has become more difficult.
He recommended investors maintain a long-term perspective, reduce the cost of applying for new shares by taking advantage of waived subscription fees and financing interest, and employ the strategy of joint applications with relatives and friends to improve allotment odds.
Research Director Zhi Yaohui shared his view that it is still challenging to determine if the Hang Seng Index has bottomed out, but he believes conditions could improve after the mid-year review, with a potential rebound to the 25,500-26,000 point range.
He reiterated a positive outlook on the prospects for AI-related sectors.
Yang Xiya, from CME Group's Retail Business Development and Sales, disclosed that futures on US individual stocks are set to launch in the summer of 2026.
The initial batch will include 54 contracts, offering both standard and micro-sized versions, tradable during Asian hours.
With a 15% margin controlling up to 6x leverage, these products will allow flexible long or short positioning without the need to borrow shares, providing a convenient tool for individual investors.
Li Jiayuan, Co-Director of Equity Derivatives Sales at CITIC Securities International, pointed out that thematic trading in the Hong Kong market during the first half focused on areas like AI large models, AI hardware, memory chips, and optical communications.
He advised investors to keep an open mind.
He recommended a diversified positioning strategy, suggesting allocating 10% to 20% of funds originally intended for a single stock or index investment into corresponding bull contracts or call warrants.
Utilizing warrants or bull and bear contracts to build micro-portfolios across multiple sectors can help avoid over-concentration of capital.
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