Zheng Quan Shi Bao·2025-12-02 18:18Core Viewpoint - The strong performance of the Hong Kong stock market is expected to continue until 2026, driven by technology, consumer sectors, and support from state-owned and cornerstone investors [1][2]. Group 1: Market Performance - The Hong Kong stock market is currently one of the best-performing markets globally, with the Hang Seng Index showing a year-to-date increase that outperforms major indices like Nasdaq and CSI 300 [1]. - The primary market in Hong Kong has also seen significant growth in IPOs and refinancing activities this year [1]. Group 2: Investment Opportunities - Three major opportunities for Chinese investment banks are identified: economic growth driven by technology and innovation, the consumer sector becoming a new growth line, and active support from state-owned and cornerstone investors [2]. - The favorable market conditions, including reasonable valuations of tech stocks and positive consumer policies, are expected to enhance investor interest in large IPOs in 2026 [2]. Group 3: Challenges - Potential challenges for the Hong Kong stock market include increased regulatory scrutiny of Chinese companies by the U.S., further controls on new productivity sectors like semiconductors, weaker liquidity compared to U.S. markets, and risks from global economic slowdowns and geopolitical conflicts [2]. - A significant challenge for Chinese investment banks is the lack of international talent, particularly outside Greater China, which is being addressed through a combination of external recruitment and internal training [3]. Group 4: Cultural Integration - Cultural challenges are highlighted as a major obstacle for the internationalization of Chinese investment banks, with cultural integration being essential for success in multinational financial institutions [3]. - The company is actively promoting cultural exchange through training programs and collaborative activities to enhance communication and cooperation among international teams [3].