Institution evaluates the prospects of Hong Kong stocks in 2026: Fundamental drivers lead the market, optimistic about the value of four types of asset allocation.

Entering the fourth quarter, securities institutions have successively released their outlook for the Hong Kong stock market next year. After leading the global major equity markets at the beginning of this year, Hong Kong stocks, which have undergone recent adjustments, are now facing the attention of investors to see if they can regain their upward momentum. In the view of industry insiders, compared to the market dominated by valuation repair in 2025, the improvement of fundamentals in 2026 may be an important factor to further drive the Hong Kong stock market, with a medium-term perspective. The AI industry catalyzing is expected to improve the net asset return of Hong Kong stock-related sectors represented by the Hang Seng Technology Index, thereby driving up market valuation. From a funding perspective, foreign and southbound funds are expected to continue flowing into the Hong Kong stock market in 2026, and the structure is also expected to be more balanced. In terms of allocation, while continuing to favor the technology sector, Hong Kong stocks' innovative drugs, securities firms, and some cyclical style assets are also worth paying attention to.