Will HK rally continue after CNY ?
I think Tencent Holdings.$TENCENT(00700)$
We can analyze it from the following points: 1) Since 2023, the external stock market has changed differently from last year, that is, the stock markets in major developed markets show signs of weakening, but the stock markets in emerging markets have begun to rise, and the Chinese and Hong Kong stock markets are the main force . This situation shows that many investors have turned to cheap valuations, and it is related to the fact that the economies of China and Hong Kong are expected to increase significantly this year. As a result, the share value of many Chinese concept stocks is more attractive
2) The enthusiasm of international funds to raise funds in China's stock market is soaring this year, and many institutional investors are willing to increase their positions in China's stock market, especially hedge funds with short assessment periods and strong speculative interests. In addition, international funds have recently rushed to raise Hong Kong stocks and Chinese concept stocks. Due to the large decline in the Internet sector earlier, such as Tencent and Alibaba, they are more sensitive to the relaxation of regulatory policies and the reduction in the risk of delisting of Chinese concept stocks. high. Therefore, many funds need to use this type of Chinese stocks as their allocation.
3) Although global stock markets have risen recently, they have all underperformed Chinese concept stocks. The reason is that many investors believe that the US dollar has weakened, and the Federal Reserve has slowed down interest rate hikes this year, which has caused funds to abandon US stocks and global stock markets and switch to To the Chinese stock market. Don't forget that many Chinese concept stocks are listed in the United States, and the transactions are very active, which makes it easy for investors to switch to this market.
4) The future performance of many Chinese concept stocks will return to about 60% to 70% before the epidemic. Including Tencent, Alibaba, Pinduoduo and other enterprises, because since the central government has greatly relaxed the epidemic prevention policy, domestic economic activities have become active, and I believe that after the Spring Festival holiday, many businesses and enterprises of all sizes will rush to recover from the epidemic. It is expected that they can recover 70% of the performance before the epidemic. I believe that the recovery in 2023, which will look back in 2024, should be attributed to China concept stocks.
Judging from the above points, I believe that the development of concept stocks will get better and better in the coming year, and the performance will only increase. Therefore, I am optimistic about the prospects of Tencent and Alibaba. Their target prices are 500 yuan and 200 yuan respectively, which I believe can be achieved by the end of the first half of this year..
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