CMSC International: Remains optimistic about Hong Kong stocks in the long term and maintains a neutral stance in the short term.

CMSC International released a research report stating that although the US May employment data appears to be decent, the aging population and tightened immigration policies have restricted labor supply, while tariff policies have affected business demand for labor. The US labor market is gradually cooling off amidst policy games and economic uncertainty. The bank said that the Federal Reserve needs to stabilize inflation expectations, but restrictive monetary policy will further worsen the labor market. Last week, US bond yields rose by 11 basis points, with the market expecting the next Fed rate cut to be delayed until July. As for the Hong Kong stock market, CMSC mentioned that the outlook for the Chinese economy and Hong Kong stocks is overall positive, with the gradual rise of non-dollar asset advantages in the future. They remain optimistic about Hong Kong stocks in the long term. However, there is currently no significant catalyst stimulation. The bank believes that geopolitical risks have not eased, and market risk aversion sentiment is still high, so they maintain a neutral stance on Hong Kong stocks in the short term.