Galaxy Securities pointed out that in the context of domestic and foreign monetary policy easing, both foreign capital and southbound capital are expected to continue to maintain a net inflow trend. Driven by favorable policies such as speeding up technological innovation, a new round of supply-side reforms, and expanding domestic demand, the profit level of Hong Kong stock listed companies is expected to substantially increase. The market will usher in a pattern of rising profits and valuations. Overall, Hong Kong stocks are expected to fluctuate upward in 2026. In terms of allocation, it is recommended to focus on the theme of scientific and technological innovation: Under the goal of a significant increase in the level of self-reliance and self-improvement in science and technology during the “15th Five-Year Plan” period, technological innovation will be a major line of investment in Hong Kong stocks. There is still plenty of room for valuation repair in the Hang Seng Technology Index. The leading performance is expected to be characterized by high prosperity. Combined with the continuing boom in mainland companies' listing in Hong Kong, the vitality of the Hong Kong stock science and technology innovation ecosystem will be further unleashed. Cyclical industry: Under the guidance of supply-side reforms and deepening policies, the supply and demand pattern of related sectors such as steel, building materials, electrical equipment, and papermaking is expected to be optimized, and capacity utilization and gross margin may increase steadily. Consumer theme: Under the leadership of the strategy of expanding domestic demand, the growth rate of performance is expected to rise and the valuation is at a historically low level, especially in service consumption, “trade-in”, and new types of consumption. Overall, Hong Kong stock investment in 2026: the pace depends on “water”, focusing on “quality”. As an offshore market, Hong Kong stocks are highly sensitive to global liquidity, implementation of domestic policies, and recovery of corporate profits. It is necessary to emphasize the importance of phased timing, policy and capital resonance points. At the same time, the structural differentiation of Hong Kong stocks is highly deterministic. The concentration of the two main lines of growth elasticity and high dividend defense attributes of the new economy has not changed, and it may further solidify in 2026 with the economic recovery slope and industrial policy.

Galaxy Securities pointed out that in the context of domestic and foreign monetary policy easing, both foreign capital and southbound capital are expected to continue to maintain a net inflow trend. Driven by favorable policies such as speeding up technological innovation, a new round of supply-side reforms, and expanding domestic demand, the profit level of Hong Kong stock listed companies is expected to substantially increase. The market will usher in a pattern of rising profits and valuations. Overall, Hong Kong stocks are expected to fluctuate upward in 2026. In terms of allocation, it is recommended to focus on the theme of scientific and technological innovation: Under the goal of a significant increase in the level of self-reliance and self-improvement in science and technology during the “15th Five-Year Plan” period, technological innovation will be a major line of investment in Hong Kong stocks. There is still plenty of room for valuation repair in the Hang Seng Technology Index. The leading performance is expected to be characterized by high prosperity. Combined with the continuing boom in mainland companies' listing in Hong Kong, the vitality of the Hong Kong stock science and technology innovation ecosystem will be further unleashed. Cyclical industry: Under the guidance of supply-side reforms and deepening policies, the supply and demand pattern of related sectors such as steel, building materials, electrical equipment, and papermaking is expected to be optimized, and capacity utilization and gross margin may increase steadily. Consumer theme: Under the leadership of the strategy of expanding domestic demand, the growth rate of performance is expected to rise and the valuation is at a historically low level, especially in service consumption, “trade-in”, and new types of consumption. Overall, Hong Kong stock investment in 2026: the pace depends on “water”, focusing on “quality”. As an offshore market, Hong Kong stocks are highly sensitive to global liquidity, implementation of domestic policies, and recovery of corporate profits. It is necessary to emphasize the importance of phased timing, policy and capital resonance points. At the same time, the structural differentiation of Hong Kong stocks is highly deterministic. The concentration of the two main lines of growth elasticity and high dividend defense attributes of the new economy has not changed, and it may further solidify in 2026 with the economic recovery slope and industrial policy.