H1 2025 recap: Hong Kong Stocks Bullish Outlook
I got profits 20K SGD, or 4% in H1 2025.
I booked dividends 16K SGD, 13K has been sent to my account by June 2025.
I estimated dividends income in 2025 would be 20K plus.
I believed HK was in the bullish trend this year. I aggressively added HK Technology and dividends stocks after trade war calm down in May and June.
Hong Kong's stock market is exhibiting signs of a bullish trend, fueled by a confluence of factors pointing towards attractive investment opportunities. While global economic uncertainty persists, the unique characteristics of the HK market, particularly its high dividend yields and comparatively low valuations, are attracting increasing attention from investors seeking robust returns.
The China government's proactive measures to support the market, including initiatives to enhance market liquidity and attract foreign investment, are contributing to a more positive sentiment. Specific policy announcements further solidify this positive outlook.
One of the most compelling arguments for a bullish stance on HK stocks is their high dividend yields. Many established companies boast significantly higher dividend payouts compared to their global counterparts, offering investors a substantial income stream alongside potential capital appreciation. This is particularly attractive in US Fed rate cut expectations. This high yield is a result of several factors, including strong corporate profitability and a culture of shareholder returns prevalent among many listed companies.
Moreover, many HK stocks are currently trading at relatively low valuations compared to international peers. This undervaluation, potentially stemming from lingering market uncertainty and previous geopolitical concerns, presents a compelling entry point for long-term investors. A thorough fundamental analysis of individual companies is crucial to identify undervalued gems with strong growth potential.
The technology sector within the Hong Kong stock market presents a particularly intriguing sub-segment for investors, the long-term growth potential remains significant. Several HK-listed tech companies are actively involved in innovative areas such as fintech, artificial intelligence, and cloud computing, offering exposure to cutting-edge technologies. However, investors should carefully assess the regulatory environment and potential competition when considering investments in this sector.
However, it's essential to acknowledge the inherent risks associated with any investment. Geopolitical factors, regulatory changes, and global economic fluctuations can all impact market performance. Therefore, a well-diversified portfolio and a thorough understanding of individual company fundamentals are crucial for mitigating risk and maximizing returns.
$LION OCBC HSTECH ETF S$(HST.SI)$
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Great sharing!