EB SECURITIES released a research report stating that while the Hong Kong stock market rebounded in April, it remains in a recovery phase. Domestic policies continue to be reinforced, releasing positive signals, while external disturbances are gradually diminishing. The US-Iran conflict shows signs of cooling, and US stocks have recently continued their volatile ascent, repeatedly hitting new record highs. Under the combined influence of these positive internal and external factors, the Hong Kong stock market is expected to sustain its recovery. Continued catalysts within the AI industry chain are driving growth in sectors like hardware, cloud computing, and internet applications. With expectations of earnings recovery and a valuation re-rating, Hong Kong tech stocks now offer attractive medium-term investment value, positioning them as a prime allocation opportunity within the current tech theme. The main views of EB SECURITIES are as follows.
A-shares and Hong Kong stocks generally rebounded in April. Major A-share indices saw broad gains for the month, with more sectors advancing than declining. Electronics, communications, and building materials were among the top performers. Influenced by improved market sentiment and rising risk appetite, the major A-share indices generally rebounded in April (as of the 28th). The STAR 50 Index recorded the largest gain, rising 18.5% for the month, while the SSE 50 Index saw the smallest increase, up 4.4%.
The Hong Kong stock market also rebounded in April. Factors such as easing geopolitical tensions, gains in overseas markets, and improved market sentiment contributed to an overall upward trend for Hong Kong stocks. As of April 28, 2026, the Hang Seng Hong Kong 35, Hang Seng Composite Index, Hang Seng Tech Index, Hang Seng Index, and Hang Seng China Enterprises Index rose by 5.4%, 3.9%, 3.8%, 3.6%, and 3.2% respectively.
A-Share Outlook: Focus on Fundamental Certainty. The market is expected to continue its volatile upward trajectory. On one hand, although tensions in the Middle East persist and related uncertainties have not fully dissipated, the market has gradually become desensitized to marginal changes in the situation following earlier adjustments, with short-term disturbances from risk aversion continuing to weaken marginally. On the other hand, as the earnings season concludes, uncertainty from results disclosures will decrease. Companies that exceeded earnings expectations are likely to receive valuation premiums, while those that fell short will have completed their risk clearance. Overall, the A-share market may continue its pattern of volatile upward movement. Structurally, it is advisable to focus on sectors with potential for sustained fundamental improvement, including hard tech, the export chain, and resource commodities. Sectors such as hard tech, the export chain, and resource commodities may see continued fundamental improvement and warrant investor attention. Within hard tech, focus on the electronics and communications industries. For the export chain, monitor industries like power equipment, machinery equipment, home appliances, light industrial manufacturing, and automobiles. For upstream resource commodities, pay attention to sectors such as petroleum and petrochemicals, basic chemicals, non-ferrous metals, and coal.
Hong Kong Stock Outlook: Recovery Expected to Continue, Tech Sector Key Focus. The Hong Kong stock market overall remains in a recovery channel. Domestically, policies continue to be strengthened, consistently sending positive signals. April's Politburo meeting emphasized utilizing existing macro policies effectively and precisely implementing incremental policies to counter external uncertainties with high-quality development. Externally, disturbances are gradually easing. The US-Iran conflict is generally cooling, and US stocks have recently continued their volatile rise, repeatedly reaching new all-time highs. Under the combined effect of these positive internal and external factors, the Hong Kong stock market is expected to continue its recovery. In terms of allocation direction, the technology sector should be a key focus. Hong Kong tech stocks are currently at a low valuation point, with negative factors largely priced in, capital returning, and AI acting as a catalyst, creating a four-factor convergence that highlights their allocation value. Continuous catalysts in the AI industry chain are boosting sentiment in areas like hardware, cloud computing, and internet applications. With the anticipation of earnings recovery and a valuation re-rating double boost, Hong Kong tech offers compelling medium-term investment value, making it a high-quality allocation direction within the current tech theme.
Risk warnings include policy implementation falling short of expectations, a significant worsening of US-Iran tensions, and the occurrence of unforeseen risk events.