J.P. Morgan: Overall optimistic about the performance of Hong Kong stocks this year.

Morgan Stanley's Chief Asian and Chinese Stock Strategist Liu Mingdi said on Wednesday that during the 90-day period of continuing trade negotiations, it is expected that the Hong Kong stock market will experience fluctuations. The breakthrough of the Hong Kong stock index will require a smooth negotiation process to reach an agreement, which may not happen until the third quarter. Overall, he is optimistic about the performance of the Hong Kong stock market this year. He continues to have a positive view on the internet and healthcare sectors, as a potential decrease in drug prices due to US healthcare reform would benefit the favorable ecosystem and products of Chinese innovative drugs. Other trading themes to watch include industry consolidation and market access liberalization, the latter of which involves the financial industry. More large companies listing in Hong Kong will make it easier for mainland and global investors to find more suitable investment targets in Hong Kong.