Split into two to look at the Hang Seng Tech Index

Mondo Social Updated on 2024-01-30

One sentence to cheer for the postgraduate entrance examination For investors who hold the Hang Seng Technology Index, especially those who entered the market at the high point of the issuance in 2021, it is now painful.

At that time, with strong regulation and the contraction of global liquidity, Hong Kong stocks experienced a liquidity contraction, among which the Hang Seng Technology Index was also relatively affected. Now, of course, these things are changing.

This is also the positive side of the two-part view that will be elaborated in this article: (1) The Fed's monetary policy will no longer raise interest rates, and it is expected to start cutting interest rates in the second and third quarters of next year, which means that the arrival of global liquidity easing, at least not as tight as before. (2) Domestic policy has shifted to support. The introduction of a series of documents on the support of the Internet of Hong Kong stocks, including supporting the private economy and promoting the high-quality development of the platform economy, shows that the orientation of the entire policy has gradually changed.

The above are the two main positive directions, but there is also an uncertain side of Hang Seng Technology at present

The proportion of the Internet is still relatively high, but the incremental part of the AI direction is still uncertain, AI is a long-term expected role for the industry, if there is a revolutionary product launch in AI, then, there will be great development, but at present, there is no clear catalytic situation. In this case, the expectation that it will bring too high is disappointed, and that is also an uncertainty for it. In addition, there are also issues such as the strength of the economic recovery and the timing of the economic recovery.

To sum up,We should take a comprehensive look at the current Hang Seng TECH Index, not only see the positive side, but also see the negative side, and the most important thing is to make the right decision, whether it is correct or not depends on future returns.

The market is risky, investment needs to be cautious, this article is only a personal opinion, not as investment advice, past performance does not represent future performance, investors need to make judgments according to their own circumstances, according to the operation at their own risk.

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