Hong Kong stock fundamentals have now confirmed a turning point, according to an analysis report. Earnings for the Hong Kong market in 2026 are projected to continue a pattern of structural recovery, with overall profit growth improving compared to 2025, though a landscape of divergence is expected to remain the dominant theme.

Profit growth will be primarily driven by the AI industry chain, upstream resources, and select high-growth sectors. A comprehensive recovery for traditional consumption and the property chain, however, is still contingent upon clearer macroeconomic signals.

Looking ahead to the second half of 2026, the Hong Kong market's status as a "value pit" is an established fact, its current "puzzling situation" is the present reality, the "long runway" is the future direction, and "accumulating strength" describes the ongoing process. While a fundamental inflection point in revenue, profits, and ROE has been confirmed, market confidence and capital flows have yet to converge into a unified force.

Recommended Investment Themes

For portfolio allocation, the report suggests focusing on two key themes.

Technology Innovation Theme

Technological innovation is set to be a major investment narrative for Hong Kong stocks. As the AI thematic expands from pure hardware into areas like computing power leasing, cloud services, semiconductors, humanoid robotics, and MaaS services across the entire industry chain, the structural disadvantages historically associated with Hong Kong stocks have the potential to transform into relative advantages.

Dividend Theme

Hong Kong's dividend-paying assets still hold overall allocation value, but internal differentiation has become very pronounced. While the energy sector, a leader in the first half, possesses high dividend characteristics, its price gains have already absorbed part of its safety cushion. Conversely, REITs, telecom services, consumer dividends, and utilities are emerging as the most cost-effective directions currently, thanks to their combination of "high dividend yield + moderate price appreciation + improving ROE."