Swire Li Zhiying: The space for Hong Kong's Hang Seng Index to continue its large-scale rally "is not too many", but individual stocks still have opportunities, AI profits will be tested as a bull market "test stone"

The Hong Kong stock market has performed well this year, with the technology and new consumer sectors leading the way, driving the Hang Seng Index to break through the 25,000-point barrier on July 21, a new high in nearly three years. Are the core factors driving the Hong Kong stock market's strong performance sustainable? Can the bull market continue to rise in the second half of the year? To answer these questions, Swire Wealth Management Investment Director Li Zhiying, responsible for the Greater China equity team, shared her observations and expectations.

Li Zhiying pointed out that the Hong Kong stock market's current rally is mainly driven by two factors. Firstly, the AI craze has attracted foreign capital to flow back into the market: many listed companies in Hong Kong are concentrated in e-commerce and game sectors. The push of artificial intelligence technology has led many overseas investors to revalue these sectors and become an important driving force. Secondly, the active secondary listings of mainland enterprises have directly benefited Hong Kong's banks and trading platforms. More importantly, these leading companies' overseas investors have provided convenient investment channels for some companies, with their H-share prices even higher than those of A-shares, boosting overall transaction volume and activity.

Looking ahead to the next market, Li Zhiying believes that from the current peak, there is not too much room for the Hang Seng Index to continue its large-scale rally, but individual stocks still have opportunities. Li Zhiying notes that whether artificial intelligence technology can be translated into actual profit growth for cloud computing-related companies and e-commerce and game sectors remains to be seen after the second-quarter earnings are released. At the same time, Li Zhiying admits that some companies' participation in the competitive market has led institutions to lower their 2025 profit expectations. If this competition stops, related companies' profits may recover, which would support the overall performance of the Hong Kong stock market positively. Li Zhiying advises investors to consider taking profits and locking in some gains, given that some individual stocks have already risen "a bit high".

Source: Sina News