In the second half of the year, I will focus on the stabilization and rebound of the Hang Seng Index.

One of my key directions in the second half of the year: the opportunity for the Hang Seng Index to stabilize and rebound. The current global market capital narrative is clear: US tech stocks, AI, and semiconductors remain the main themes, but the problem is that this line is already crowded and valuations are not cheap. On the other hand, after years of adjustment, Hong Kong stocks still belong to one of the most undervalued sectors among major global markets. So I don't think Hong Kong stocks will necessarily have a big bull market in the second half of the year, but I believe it has a logic: low-valuation markets tend to experience periodic repair during global capital rebalancing. The trend of the Hang Seng Index in the second half is usually not a sustained one-way upward move, but is repeatedly affected by several factors: policy expectations, USD strength/weakness, southbound capital flows, RMB exchange rate, corporate earnings, and external risk appetite. So my strategy is not to chase highs, but to wait for stabilization. I will consider allocating 10%-15% of my total position as a Hong Kong stock observation position. This capital will be deployed in three batches: first batch: establish a base position when market stabilization is confirmed; second batch: add when a pullback does not break key support; third batch: supplement after the trend becomes clear and capital inflows continue. In terms of targets, I currently prioritize only Tencent. The reason is simple: Tencent is one of the core tech assets in Hong Kong stocks. Its cash flow, ecosystem, buybacks, gaming, advertising, fintech, and AI applications make it more suitable as a core observation target for a Hong Kong stock rebound than most other Hong Kong-listed stocks. I do not recommend building positions in other Hong Kong stocks for now. At this stage, first capture core assets with higher certainty, and do not rush to spread too thin. My judgment is that if global capital starts to divert from crowded high-valuation tech trades in the second half of the year, Hong Kong stocks, as a low-valuation market, will have the opportunity to be repriced. What is truly worth watching for the Hang Seng Index is not short-term daily fluctuations, but whether it can form a structure of "rising bottom, capital return, and core assets repairing first." No full positions, no chasing highs, position in batches. For Hong Kong stocks in the second half of the year, I first watch the stabilization of the Hang Seng, and then the elasticity of Tencent. This is only personal observation and does not constitute investment advice.
$TENCENT