CITIC Securities International: Long-term optimism for Hong Kong stocks, maintaining a neutral stance in the short term

According to the Zhitong Finance APP, China Merchants Securities International released a research report stating that although the U.S. employment data for May appears acceptable on the surface, the current aging population and tightening immigration policies are limiting labor supply. Tariff policies are affecting companies' demand for labor, and the U.S. labor market is gradually cooling amid policy games and economic uncertainty.

The report indicates that the Federal Reserve needs to stabilize inflation expectations, but restrictive monetary policies will further deteriorate the labor market. Last week, U.S. Treasury yields rose by 11 basis points, and the market expects the Federal Reserve to delay its next rate cut until July. Regarding Hong Kong stocks, China Merchants Securities pointed out that the outlook for the Chinese economy and overall profitability of Hong Kong stocks is positive, and the advantages of non-U.S. dollar assets are gradually increasing, maintaining a long-term optimistic view on Hong Kong stocks. However, there are currently no significant catalysts to stimulate the market. The report believes that geopolitical risks have not eased, and market risk aversion remains high, thus maintaining a neutral stance on Hong Kong stocks in the short term