On May 19th, the Hang Seng Index opened 0.07% higher, while the Hang Seng Tech Index fell 0.14%. In terms of market performance, some technology and internet stocks were active, with
Regarding the outlook for Hong Kong stocks, Everbright Securities' overseas team believes the market's bottom area has emerged, but a reversal is not yet imminent, with structural opportunities taking priority. The current market has largely priced in negative factors. The return of overseas passive funds and the sustained inflow of southbound capital provide a solid value floor for the Hong Kong market. However, active foreign capital representing global long-term funds has not returned on a large scale, leaving the market lacking the most crucial driver for a sustained trend.
Founder Securities maintains a positive view on the high-speed optical module market, expecting it to continue benefiting from high capital expenditure by North American Cloud Service Providers in 2026. Massive demand for AI computing power training and inference is driving the deployment of scale-up/scale-out networks in AI computing clusters. Domestic high-speed optical module companies are expected to maintain high industry prosperity.
China Galaxy Securities noted that the market previously traded on expectations that new Federal Reserve Chairman Kevin Warsh might adopt a more dovish stance. However, this week's reality dashed those expectations. Even before Warsh's official swearing-in, the bond market tightened financial conditions prematurely, pushing yields higher in anticipation of "rate hikes." Vincent Ahn characterized this as a "modern version of bond vigilantes." However, the market also has the potential to "front-run" expectations for monetary easing, with the second half of the year (July-August) being a key observation window. The firm suggests focusing investment strategies on three main themes: the technology sector; high-dividend/yield assets (defensive holdings); and the innovative drug sector.
Guosen Securities believes the rapid development of AI Agents, the improvement in large AI models' agentic capabilities, and the continued expansion of OpenClaw are accelerating the enhancement and penetration of AI capabilities. The firm continues to be optimistic about opportunities in the AI application end. It also suggests paying attention to opportunities in the marketing industry benefiting from competition for traffic entry points, expecting benefits from marketing intermediaries to high-quality training data and large model platforms.