Jin Rong Jie·2026-02-09 00:18Core Viewpoint - The Hong Kong stock market experienced volatility due to global risk asset fluctuations, with significant inflows from foreign and southbound investors driving traditional sectors like agriculture, food and beverage, and transportation to strengthen [1] Fundamental Analysis - Non-financial earnings expectations have been revised upwards, particularly in the semiconductor (4.8%/1.5%), pharmaceutical (1.9%/1.2%), and real estate (0.7%/0.9%) sectors over the past four weeks and one week respectively [2] - The toy sector saw a 1.0%/0.4% upward revision in earnings expectations, while the food and beverage sector experienced a downward revision of 0.4%/1.1% [2] Capital Flow - As of Wednesday, foreign net inflows into Hong Kong stocks amounted to $1.88 billion, down from $2.80 billion the previous week, with active foreign inflows at $420 million and passive inflows at $1.47 billion [3] - Southbound net inflows into Hong Kong stocks reached HKD 56 billion, significantly up from HKD 2.7 billion the prior week, with media, real estate, non-bank financials, transportation, and banking sectors seeing the highest net inflows [3] Market Sentiment - The Hong Kong stock sentiment index stood at 63.8, indicating an optimistic outlook, with net inflows from southbound funds and buying intensity showing further recovery [4] - Despite recent market volatility, there has been no significant adjustment in positions, suggesting that investor sentiment remains resilient [4] Investment Strategy - Short-term focus should be on semiconductor hardware and innovative pharmaceuticals, with a continued emphasis on resource stocks, insurance, and local Hong Kong stocks in the medium term [5]