WH GROUP (00288) saw its shares climb nearly 3% during the trading session. As of the latest update, the stock was up 2.71%, trading at HK$10.22, with a turnover of HK$821.773 million.

A research report from CLSA indicated an increase in the allocation weight for the Hong Kong market to an overweight position of 20%. Key considerations include the reduced correlation between the Hong Kong and mainland China markets, allowing for differentiated allocation strategies. The Hong Kong IPO market is expected to outperform its 2025 performance this year, with total fundraising from IPOs and share placements reaching US$82.3 billion last year. Additionally, the Hong Kong property market recorded its first year-on-year increase since 2021, with the recovery in the property sector expected to boost the stock market.

Furthermore, corporate earnings forecasts for Hong Kong have turned positive since July 2025, ranking second in the Asia-Pacific region only behind Japan, South Korea, and Taiwan. The valuation of Hong Kong stocks remains attractive compared to regional peers, with a price-to-earnings ratio of 16.7 times, slightly below the 35-year average of 17.2 times. Excluding mainland China and ASEAN markets, the Hong Kong market is the farthest from its historical peak, indicating potential for catch-up growth.

The report highlighted preferred stock recommendations, including WH GROUP (00288), AIA (01299), HKEX (00388), Sun Hung Kai Properties (00016), CK Hutchison Holdings (00001), Techtronic Industries (00669), and Galaxy Entertainment (00027). All of these companies received an "Outperform" rating. Among them, WH GROUP was designated as a "High Conviction" stock by the firm.