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CITIC Securities 'latest research report pointed out that since late April, the Hong Kong stock market has shown a strong rebound and become the global stock market leader. The research report pointed out that the upward momentum of Hong Kong stocks is mainly due to the turning around in investors 'pessimistic expectations for the market and the dual promotion of valuation repair.

According to analysis, compared with late January, the liquidity of Hong Kong stocks has improved significantly, and the trading environment has been significantly improved. At the same time, the price/performance ratio between valuation and performance is still considerable.

CITIC Securities further explained that the four key factors driving the rebound of Hong Kong stocks include: the stability of the external environment, the focus of domestic policies, the expectation of dividend tax relief for Hong Kong Stock Connect, and the market's revaluation of the value of growth stocks.

Compared with the three rebounds in 2022 after reversing pessimistic expectations, CITIC Securities believes that the current valuation repair of Hong Kong stocks has shown greater resilience and sustainability.

In terms of investment strategy, CITIC Securities advises investors to focus on three main investment areas: First, the large financial sector, especially the insurance and real estate industry chains, benefiting from the continued launch of policies and warming market sentimentburnoutcrash; Secondly, the consumer and technology industries, these areas are expected to continue valuation repairs; and finally, the consumer electronics industry will benefit from the upgrading of domestic consumer goods, the replenishment of U.S. inventories, and the improvement of industry prosperity.