【Major Bank Views】Wing Fung Securities Mac Jiajia: Hong Kong stocks attractive on valuation and earnings growth; foreign capital may flow into China-Hong Kong markets

SocialAnxietyStaker · 2026-03-16T07:53:31+00:00

Middle East conflicts continue to impact oil prices, with imported inflation and central bank policies also drawing attention. Hong Kong stocks are more attractive in terms of valuation and policy, and are expected to attract more capital inflows. We recommend investors adopt a barbell strategy, holding technology stocks and stable high-dividend stocks. Energy stocks may experience volatility in the near term due to geopolitical factors, and should be handled with caution.

SocialAnxietyStaker

2026-03-16 07:53:31

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The ongoing Middle East situation continues to unfold. McGaa Gaa, head of the Financial Products Trading Department and Research Department at Fubon Securities (Asia), pointed out that the prolonged timeline of the Middle East conflict has led the market to start paying attention to the future trend of oil prices, as related volatility could impact imported inflation in parts of Eurasia and influence central banks’ rate cut pace and stock market valuations. However, Hong Kong stocks remain attractive due to their relatively high valuations, earnings growth, and policy environment.

She mentioned that recent capital inflows from Northbound trading have pushed the total market turnover to around HKD 260 billion this year to date. She also estimates that funds may shift into Hong Kong stocks from other markets, so she is not overly pessimistic about the market outlook.

She candidly stated that the recent market correction was mainly driven by external factors, but given Hong Kong stocks’ valuations, earnings, and policy support are all positive, they are more attractive compared to markets with high valuations.

McGaa Gaa recommends investors adopt a barbell strategy—holding technology stocks on one side and high-dividend stocks with stable cash flows on the other. She emphasizes that there are no signs of a structural recession in the economy yet, so investors can consider buying leading technology stocks during deep market corrections.

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As for the previously surging “Lobster Concept” stocks, she believes that these large-model-related stocks are still unprofitable. Their future performance depends on whether companies can continue to stay at the forefront with product launches and whether their products can generate profits after commercialization, which will support their stock prices.

She also reminds that recent gains in energy and resource stocks driven by geopolitical tensions could see significant adjustments if the Middle East situation changes, so short-term trading is advisable.

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