Institutional analysis forecasts the outlook for Hong Kong stocks in 2026: Fundamentals will drive the market, optimistic about the value of four types of asset allocation.

As we enter the fourth quarter, securities firms are releasing their outlooks for the Hong Kong stock market next year. Hong Kong stocks, which led global major equity markets at the beginning of the year, are now facing uncertainties after recent adjustments, attracting investors' attention. According to industry experts, unlike the market dominated by valuation repair in 2025, the improvement of fundamentals in 2026 may be an important factor driving further gains in the Hong Kong stock market. In the medium term, the AI industry is expected to catalyze the improvement of net asset returns of Hong Kong stocks related sectors represented by the Hang Seng Tech Index, thereby boosting market valuation; from the perspective of fund flows, foreign capital and southbound funds are expected to continue flowing into the Hong Kong stock market in 2026, potentially leading to a more balanced structure. In terms of allocation, while continuing to favor the technology sector, Hong Kong stocks in innovative drugs, securities firms, and some cyclical style assets are also worth paying attention to.