Hong Kong stocks experience a strong rebound, with fund-led stocks taking the lead

A Hong Kong stock market that has experienced a deep pullback finally saw a long-awaited rebound. On April 1, all major sectors of the Hong Kong stock market surged collectively. By the close, the Hang Seng TECH Index rose 2.29%, while the Hang Seng Healthcare Index jumped 6.39%.

From the trading board, the rebound’s core driving force came from fund-holding “block” stocks. Multiple leading themes surged, including robotics, innovative drugs, retail consumption, artificial intelligence (AI), and internet entertainment. Key stocks across each segment all recorded impressive gains, showing the characteristics of an across-the-board rebound.

Specifically, the robotics sector performed particularly well. U.S. investors fund holdings had Voyager?—Guangfa? No; it was: Front? Open Source? Wait: 前海开源基金重仓的优必选单日大涨17.10%, and MicroPort?—“微创机器人” held by East Money Fund rose nearly 9% in value. In the innovative drugs sector, it also moved higher in tandem. Lepu Biotech, heavily weighted by J.P. Morgan?—“景顺长城重仓的乐普生物” rose 14.42%, and SanSheng Pharmaceutical, heavily weighted by E Fund, rose by about 12%. In the retail consumption sector, Blue?—“布鲁可” heavily held by BOC Schroder?—“中银基金重仓” rose 6.09%, and Oriental Selection, held by Minsheng Galaxy Fund, rose as much as 10.46%. In the artificial intelligence sector, Jing?—“晶泰控股,” heavily held by Fullgoal Fund, rose 8.10%. The internet entertainment via mobile platforms also showed a clear rebound. Bilibili, heavily held by Ping An Fund, rose nearly 7%, and Chizi City Technology, held by Southern Fund, surged 10.43%.

It is worth noting that on April 1, Hong Kong’s aviation sector led the entire market with a gain of 8.58%, becoming the most direct manifestation of consumption recovery, and also confirmed by statistical data. The National Bureau of Statistics recently released data showing that in February, CPI rose 1.3% year over year, setting a new high in nearly three years. The rebound in service consumption prices was especially significant. Prices for airplane tickets, transportation and equipment leasing, travel agency fees, and hotel accommodation rose by 29.1%, 19.8%, 12.5%, and 5.4%, respectively. The recovery in pricing along the travel chain directly reflected the repair of residents’ offline consumption demand, and provided solid fundamental support for sectors such as aviation, hotels, and tourism. Public mutual fund products, represented by 广发睿毅领先基金, have also taken heavy positions. Consumption recovery-focused star fund manager Lin Yingrui continued to buy into the consumption recovery theme; the fund’s top six holdings are all aviation stocks, so it reaped substantial gains in this rebound.

Regarding the current rebound structure in Hong Kong stocks spreading from localized gains to a broader market, many fund managers believe it is related to confidence recovery following undervaluation.

A consumption-sector fund manager in South China said that the current southbound capital allocation is no longer limited to a small number of popular themes, and the coverage continues to broaden, reflecting that institutional capital’s confidence in Hong Kong stocks is being restored. The core support lies in the fact that the overall valuation of Hong Kong stocks is within a historically low range, making the risk-reward ratio highly attractive. Meanwhile, the February CPI data further verifies the trend of domestic demand recovery, providing support for the rebound to spread into consumption and service sectors, ultimately forming a situation where technology, consumption, pharmaceuticals, and resource cycles move together.

However, public fund practitioners judge that the rebound in Hong Kong stocks may be difficult to achieve all at once, and going forward, it still needs to focus on earnings delivery.

“Several sentiment indicators have already released bottoming signals, but the sustainability of the rebound still depends on performance verification.” A sector research analyst at a fund company in Shenzhen also believes that the current style in Hong Kong stocks is likely to rotate quickly with marginal changes in the Middle East geopolitical conflict: when tensions escalate, defensive assets tend to take the lead, and when the situation eases, technology growth leads. Whether the market can continue to strengthen afterward depends mainly on two variables: first, whether geopolitical risk can ease further and drive overseas capital to return; second, whether earnings can deliver on the optimistic outlook for the cycle and provide investors with clearer allocation cues.

(Editor: Xu Nannan)

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