Zhang Yidong's latest sharing: The influence of the "Korean Wave" on the Hong Kong stock market has reached the later stage, the AI wave is still not over but internal differentiation is intensifying...

The diversion of capital from Japan, South Korea, and Taiwan to Hong Kong stocks may have reached the later stages. "The wave of AI is not over yet, but it is necessary to avoid purely story-based companies and focus on assets that are key to the industrial chain and have barriers to entry." "In fact, the clarion call of China's economic spring has quietly sounded, with linear indicators becoming increasingly certainthe construction of the bottom region of the real estate sector corresponds to the stabilization of China's domestic demand." "Investment needs to pay more attention to two things: the certainty of the value of the portfolio and the hardness of asset quality." "I believe that whether it's in the second quarter or the second half of the year, foreign capital will flow back to Chinese assets, resonating with local capital and driving A shares and Hong Kong stocks upward." "It is necessary to allocate a certain proportion of the portfolio to gold or strategic assets." The above are the latest views shared by Zhang Yidong, a member of the executive committee and chief economist of Haitong International, in an online exchange yesterday (February 27). In his view, the biggest change in the global market in 2026 compared to last year is the significant shift in the narrative weight between "value" and "growth." Therefore, this year's investment needs to focus more on the certainty of value and the hardness of assets. When talking about overseas factors, he pointed out that while the US stock market is not heading towards a bear market, structural opportunities and profit effects will be weaker than in 2025, making the investment cost-effectiveness lower than some emerging markets. Returning to Chinese assets, he believes that the "three major obstacles" suppressing Chinese assets have already been overturned. The systematic release of institutional dividends, the bottoming out of the Chinese economy, and the stabilization of domestic demandthe convergence of these factors form the "new triangle support" for A-shares. Therefore, he still strategically favors China and believes that this year will see a more cautious approach. Regarding the most concerning topic in the market currently, Hong Kong stocks, he frankly stated that Hong Kong stocks are not entering a bear market but are facing the "Korean Wave" in early summer. However, many indicators show that the Korean market is currently at a short-term high in sentiment, indicating that the impact of the "Korean Wave" could ease at any time. At the same time, the renminbi may maintain a volatile trend in the short term, but looking at the medium to long-term trend, it still has a direction towards appreciation. Therefore, the return of foreign capital to Chinese assets is more of a pacing issue rather than a trend issue. From the perspectives of valuation and fundamentals, heavyweight stocks such as Tencent and Alibaba have entered a phase of "exhaustion of short-selling energy," and the current situation of Hong Kong stocks is more like a stage where "tears are shed for sowing seeds." Regarding this year's investment focus, he summarized it as "two dimensions, four directions." In conclusion, he also reminded about two risks: the risk of picking the wrong stocks and the risk of pacing changes due to geopolitical black swan events. This article was a comprehensive translation and paraphrasing of the original text, aiming to capture the main points and convey the information clearly.