CICC: Hong Kong stocks have not completely shaken off the volatile pattern

Jinshi data news on November 12th, CICC research report indicated that under the benchmark situation, we believe that Hong Kong stocks have not completely escaped the volatile pattern, because there is not much room for valuation and risk premium, and profit improvement requires greater stimulation. Therefore, stronger expectations at the index level need to be based on greater pressure, which is also the condition for the introduction of larger-scale stimuli under the “stimulus-oriented” policy mindset. However, the more thorough valuation and position clearing of Hong Kong stocks, and the better profit structure, make it easier for them to rebound under suitable catalysts, and may also have more resilience than A-shares. Therefore, “Rebound is intermittent, structure is the main line”, gradually layout on the left side of the downturn, and moderately profit from the excitement on the right side to switch to the structure, seems to be a more effective strategy.