Dongji Fund: The worst news for the stock market has already been released, and there are no concerns about the Hong Kong stock market's performance in the second quarter
The increase in tariffs between China and the United States has reached an extreme situation. Pang Baolin, Managing Director of Dongji Fund Management, believes that Trump can only reduce tariffs in the future, and the impact on the stock market will continue to diminish. He thinks that the worst news has already been reflected in the stock market and is not worried about the performance of Hong Kong stocks in the second quarter; instead, there is a chance for improvement. The Central Political Bureau meeting in April was held last week, where the term "Four Stabilities" was first proposed, and the market is waiting for actual policies. Pang Baolin believes that the central government will take action in May, expecting Hong Kong stocks to challenge high levels in the same month and show a "sell in May" trend, with a peak of 23,000 points this season. If interest rate cuts occur, there is a chance to challenge the 25,000 mark. He pointed out that Chinese companies have already prepared for supply chain diversification, and the issues faced by the United States may be greater than those faced by China. If this forces Trump to refrain from significantly reducing taxes, the Federal Reserve will need to cut interest rates this season, which is expected to drive Hong Kong stocks up, as it would provide greater room for interest rate cuts and reserve requirement ratio reductions in China, which has not yet been reflected in the stock market. Pang Baolin indicated that there are significant investment opportunities in technology-related stocks and is optimistic about electric vehicles and autonomous driving concepts. He also suggests continuing to accumulate gold when prices adjust. As for Chinese telecom stocks, their performance in the first quarter was average, and future performance will depend on how the central government promotes AI development
According to the Zhitong Finance APP, the increase in tariffs between China and the United States has reached an extreme situation. Pang Baolin, Managing Director of Dongji Fund Management, believes that Trump can only reduce tariffs in the future, and the impact on the stock market will continue to diminish. He believes that the worst news has already been reflected in the stock market and is not worried about the performance of Hong Kong stocks in the second quarter, but rather sees opportunities for improvement. The Central Political Bureau meeting held last week has proposed "four stabilizations" for the first time, and the market is waiting for actual policies. Pang Baolin believes that the central government will take action in May, and expects Hong Kong stocks to have the opportunity to challenge high levels in the same month, with a trend of "sell in May." He anticipates that the highest point this season could reach 23,000 points, and if interest rate cuts occur, it may challenge the 25,000 mark.
He pointed out that Chinese companies have already made preparations for supply chain diversification, and the US dollar, US Treasury bonds, and US stocks have already reflected this. The problems faced by the US may be greater than those faced by China. If this forces Trump to refrain from significantly reducing taxes, the Federal Reserve will need to cut interest rates within this season, which is expected to drive Hong Kong stocks up, as it would provide greater room for interest rate cuts and reserve requirement reductions in China, which has not yet been reflected in the stock market.
Pang Baolin indicated that there are significant investment opportunities in technology-related stocks, and he is optimistic about electric vehicles and autonomous driving concepts. At the same time, he suggests continuing to accumulate gold when prices adjust. As for Chinese telecommunications stocks, their performance in the first quarter was average, and he believes that future performance will depend on how the central government promotes AI development
