At the Huatai Securities 2027 Investment Summit, Li Yujie, co-chief strategic analyst at Huatai Securities Research Institute, shared the latest outlook on the Hong Kong and US stock markets. She pointed out that the decline in Hong Kong stocks in 2026 was mainly due to a contraction in valuation. Looking ahead to 2027, the stage of maximum macro-liquidity pressure may be over, but some constraints still exist, and opportunities for Hong Kong stocks will come more from structural profit improvements and global capital rebalancing. In the short term, the market's pessimistic expectations have been sufficient, and Hong Kong stocks may recover in sentiment; the medium-term trend still depends on improvements in domestic demand. Li Yujie expects the recurrent net profit of all Hong Kong stocks to increase by 5.3% in 2027. Among them, the non-financial sector will grow by 11.2%, making profits more resilient. Currently, the overall valuation of Hong Kong stocks is not in a significantly undervalued range. The upward space for the index will depend more on profit growth, and southbound capital is expected to be an important force driving marginal improvement in capital. In terms of allocation, it is recommended to use a high-dividend portfolio as a base, gradually add an offensive combination with simultaneous improvements in profitability, profit margin, and dividend ratio after valuation stabilizes and profit expectations stabilize, and focus on the consumer and domestic AI industry chains. The alpha opportunity for individual stocks may be more prominent than the exponential beta. In terms of US stocks, Li Yujie predicts that under the benchmark situation, the S&P 500 index will rise or narrow to single digits in 2027, market volatility may increase, and event-driven characteristics will increase. In terms of configuration, it is recommended to focus on decentralization and hedging, taking into account defensive industries, high ROIC technology leaders, and AI application opportunities.

At the Huatai Securities 2027 Investment Summit, Li Yujie, co-chief strategic analyst at Huatai Securities Research Institute, shared the latest outlook on the Hong Kong and US stock markets. She pointed out that the decline in Hong Kong stocks in 2026 was mainly due to a contraction in valuation. Looking ahead to 2027, the stage of maximum macro-liquidity pressure may be over, but some constraints still exist, and opportunities for Hong Kong stocks will come more from structural profit improvements and global capital rebalancing. In the short term, the market's pessimistic expectations have been sufficient, and Hong Kong stocks may recover in sentiment; the medium-term trend still depends on improvements in domestic demand. Li Yujie expects the recurrent net profit of all Hong Kong stocks to increase by 5.3% in 2027. Among them, the non-financial sector will grow by 11.2%, making profits more resilient. Currently, the overall valuation of Hong Kong stocks is not in a significantly undervalued range. The upward space for the index will depend more on profit growth, and southbound capital is expected to be an important force driving marginal improvement in capital. In terms of allocation, it is recommended to use a high-dividend portfolio as a base, gradually add an offensive combination with simultaneous improvements in profitability, profit margin, and dividend ratio after valuation stabilizes and profit expectations stabilize, and focus on the consumer and domestic AI industry chains. The alpha opportunity for individual stocks may be more prominent than the exponential beta. In terms of US stocks, Li Yujie predicts that under the benchmark situation, the S&P 500 index will rise or narrow to single digits in 2027, market volatility may increase, and event-driven characteristics will increase. In terms of configuration, it is recommended to focus on decentralization and hedging, taking into account defensive industries, high ROIC technology leaders, and AI application opportunities.