An electronic ticker board displays various stock prices at Exchange Square in Hong Kong on March 9, 2020. (ISAAC LAWRENCE / AFP)
HONG KONG – The industries supported under the “Common Prosperity” policy plus those industries linked to climate change and digitalization are the investment trends for next year, while some sectors such as green energy, the high-tech manufacturing industry and 5G are expected to rebound, a Standard Chartered Bank strategist said on Wednesday.
With the global economy recovering, the market is expected to rebound, though the return on investment might be limited. Meanwhile, inflation, the Omicron variant, as well as government policies are still key factors in investment risks, Standard Chartered said.
With the global economy recovering, the market is expected to rebound, though the return on investment might be limited. Meanwhile, inflation, the Omicron variant, as well as government policies are still key factors in investment risks, Standard Chartered said
As for Hong Kong stocks, the continuing decline is unlikely to last long despite the market’s poor performance this year, said Will Leung, Standard Chartered’s head of investment strategy for its wealth management unit.
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In 2021, the city saw its biggest loss in the stock market during the past decade, after the Chinese mainland tightened regulations on technology and property firms.
“There is always a cycle for the stock market,” Leung said, adding that the adverse effect has shown on the market and the space for a further decline is “limited”.
In Leung’s opinion, regulations are still the largest risk in the following year. With the regulations relaxed, the stock market could rebound. In addition, new investment opportunities can be found under the “Common Prosperity” policy, Leung added.
The industrial sector, as well as consumer discretion, are expected to be bullish, supported by favorable mainland policies, according to Standard Chartered.
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In addition, the firm gave a bearish view on the dollar for the next year. “Though the US dollar shows a good performance this year, it is just a rebound compared with last year,” said Gavin Lam, senior investment strategist for wealth management unit at Standard Chartered.
“It is used as the risk-averse product for investors, so it would be supported by some investors in a short term, but might go down after that,” Lam said.
aoyulu@chinadailyhk.com