Has #ideas2invest been useful to you?
Please click here to share your feedback.
Hong Kong’s Hang Seng Index took a beating after the regulatory developments in China spurred a sharp sell-off in Chinese education and technology stocks. Regulatory risk in China is not new to investors. Investors who still want to access China’s growth story will have to monitor regulatory developments and be cognisant that socioeconomic factors are considered in policy formulation.
DBS Group Research’s Hong Kong equity research believes sectors which involve public welfare, children, and health could face tighter regulation. While banks, consumer-related, and Hong Kong-based names are safe from the regulatory overhangs. There is no doubt that new economy stocks offer good risk reward after the recent sell-off, but near-term volatility will persist pending new policies.
Ready to act now?
Add these to your portfolio via your preferred channel.
DBS Internet banking
Simply click on the stock name for direct access to our online equity trading platform.
Search for any of the above stock names under the “Invest” tab.
Old economy sectors
We believe old economy stocks with lower regulatory risks are safer bets especially after the recent correction. We continue to like the cyclical recovery sectors like financial and property.
We are upbeat on AIA, BOC Hong Kong, and SHK Properties’ prospects.
New economy names
There is no doubt that new economy stocks offer good risk-reward after the recent sell-off, but near-term volatility will persist pending new policies.
We believe Meituan’s dominant position will remain even after regulatory actions.
Not a DBS client?
Open a trading account with us today.
5-min article
China stocks have come under pressure2-min video
ASEAN Tech – Catch the early rise4-min article
The “Beijing Consensus” on investment2-min video
How to invest as markets turn volatile?For the latest updates on Investment Strategy, please visit Market Insights.
