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

Hong Kong stocks, which have experienced a deep pullback, have finally seen a long-awaited rebound. On April 1, major sectors across Hong Kong stocks rallied across the board. By the close, the Hang Seng TECH Index rose 2.29%, while the Hang Seng Healthcare Index surged 6.39%.

From the market overview, fund “group-betting” stocks have become the core driving force behind the rebound. Multiple main lines, including robots, innovative drugs, retail consumption, artificial intelligence (AI), and internet entertainment, all posted solid gains. Each sector’s key leading stocks recorded considerable increases, showing the characteristics of a broad-based rebound.

More specifically, the robotics sector performed particularly well. You should be ranked among the heavy holdings of the Qianhai Open-Source Fund; its single-day gain for UBTech rose 17.10%. MicroPort Robotics held by the Eastmoney Fund rose nearly 9%. The innovative drugs sector also moved higher in parallel. Lepu Biopharma, heavily held by the Invesco Great Wall Fund, closed up 14.42%, while SanSheng Pharmaceutical, heavily held by the E Fund, rose by about 12%. In the retail consumption segment, BlueBoo held by the BOC Schroder Fund gained 6.09%, while Oriental Selection, held by the Minsheng Yield and Value Fund, rose by 10.46%. In the artificial intelligence segment, JingTai Holdings, heavily held by the Fuguo Fund, rose 8.10%. In the mobile internet entertainment sector, sentiment also clearly improved: Bilibili, heavily held by the Ping An Fund, rose nearly 7%, and A-Share Technology, held by the 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 reflection of consumption recovery, and also consistent with statistical data. Recent data from the National Bureau of Statistics show that in February, CPI同比 increased by 1.3%, the highest level in nearly three years. Among them, the rebound in service consumption prices was especially notable. Airfares, transportation equipment leasing, travel agency fees, and hotel accommodation prices rose 29.1%, 19.8%, 12.5%, and 5.4%, respectively. The improvement in the prices along the travel chain directly reflects a repair in residents’ offline consumption demand, providing solid fundamental support for sectors such as aviation, hotels, and tourism. Public fund products, represented by the 广发睿毅领先基金, have also been heavily positioned. Star fund manager Lin Yingrui has continued to buy into the consumption recovery theme. The fund’s top six heavy-holding stocks are all aviation-related stocks, so it reaped sizable gains in this rebound.

Regarding the current structure of the Hong Kong stock rebound expanding from local areas to the whole market, many fund managers believe it is related to confidence repair following undervaluation.

A consumption-sector fund manager in South China said that the current allocation by southbound capital is no longer limited to a handful of popular themes; its 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 Hong Kong stocks’ overall valuations remain in a historically low range, making the cost-performance ratio particularly attractive. In addition, the February CPI data further validates the trend of domestic demand recovery, providing support for the rebound to spread into the consumption and services sectors, ultimately forming a scenario in which technology, consumption, healthcare, and resource-cycle themes all move together.

However, public fund practitioners judge that the Hong Kong stock rebound may be difficult to achieve in a single step, and that the next stage still needs to focus on earnings realization.

“Several sentiment indicators have already released bottoming signals, but the sustainability of the rebound still depends on earnings verification.” A securities industry researcher at a fund company in Shenzhen also believes that the current Hong Kong stock style is rapidly rotating in response to marginal changes in Middle East geopolitical conflicts: when conflict intensifies, defensive assets have the upper hand; when the situation eases, technology growth leads. Whether the market can continue to strengthen depends mainly on two variables going forward: first, whether geopolitical risk further eases and drives overseas capital to return; second, whether earnings can deliver on the economic cycle expectations and provide more explicit allocation guidance for capital.

(Editor: Xu Nannan)

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