Hong Kong stocks opened higher on Monday, with the Hang Seng Index rising 1.4% and the Hang Seng Tech Index advancing 1.58% at the start of trading. Technology stocks were broadly stronger, with Baidu and NetEase both gaining more than 3%. Financial and property stocks also led the gains, with China Overseas Land & Investment rising over 5% to lead blue-chip performers.
South Korea's KOSPI index surged 3%, breaking through the 6,800-point level for the first time. Hong Kong-listed leveraged products tracking Samsung Electronics and SK Hynix opened 4% and 10% higher respectively.
Looking ahead, two major international investment banks, Goldman Sachs and UBS, recently released their latest market strategies. While their perspectives differ slightly, their core conclusions are highly consistent: both remain firmly optimistic about Chinese assets. Specifically for the Hong Kong market, international investment banks believe it differs from A-shares, placing greater emphasis on technology catalysts and capital flows.
UBS particularly mentioned that H-shares, especially the Hang Seng Tech Index, are likely to benefit from catalysts such as the easing of food delivery price wars and the launch of new AI models like DeepSeek. Goldman Sachs emphasized that Hong Kong stocks' attractive high dividend yield (approximately 5.7%) and southbound capital inflows provide important support.
Guoyuan International also noted in its research report that after experiencing sentiment recovery, the Hong Kong market saw fluctuations last week due to external environmental impacts. Global major asset classes were similarly affected during the week, with interest rate-sensitive assets generally underperforming, while the main gainers were equity assets clearly benefiting from the AI industry. The semiconductor sector in Hong Kong stocks also showed independent strength, performing significantly better than other sectors.
Guoyuan International further mentioned that overall, global markets remain in a rate-cutting cycle, and Hong Kong stocks benefit from this with relatively resilient capital conditions. The trend of Hong Kong stock allocation dominated by mainland capital remains strong in the overall loose environment, resulting in substantial capital accumulation in Hong Kong stocks. Southbound capital's pricing power over Hong Kong stocks continues to strengthen, and this trend is likely to continue unless significant changes occur in domestic macroeconomic and policy environments.