HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The elevated crude oil prices are expected to drive persistent inflationary pressure, and this will benefit high dividend yield stocks.</li>
<li>The top 10 high-yield HSI constituents have an average dividend yield of 6.7% for CY26. Since the War, they have outperformed the Index by an average of 1.1pp.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-unicom-hong-kong-ltd" target="_blank" data-smartkarma-citation="entities:1016:1" rel="noopener">China Unicom HK (762 HK)</a>, <a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a>, <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a>, <a href="https://www.smartkarma.com/entities/tingyi-cayman-islands-holding-corp" target="_blank" data-smartkarma-citation="entities:14016:1" rel="noopener">Tingyi Holding (322 HK)</a>, and <a href="https://www.smartkarma.com/entities/china-hongqiao-group-ltd" target="_blank" data-smartkarma-citation="entities:1909:1" rel="noopener">China Hongqiao (1378 HK)</a> are at the top of the list.</li>
</ul>


The elevated crude oil prices are expected to drive persistent inflationary pressure, and this will benefit high dividend yield stocks.
The top 10 high-yield HSI constituents have an average dividend yield of 6.7% for CY26. Since the War, they have outperformed the Index by an average of 1.1pp.

China Unicom HK (762 HK), China Mobile (941 HK), Link REIT (823 HK), Tingyi Holding (322 HK), and China Hongqiao (1378 HK) are at the top of the list.


HK Strategy: Winners of Potentially Higher Inflation

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong market is experiencing its worst February/March period in 10 years.  Although the market has corrected amid risk-off sentiment, we expect it to hold long-term support at 24000.</li>
<li>The energy sector has been the clear beneficiary this year, with coal companies outperforming. </li>
<li>
<a href="https://www.smartkarma.com/entities/semiconductor-manufacturing-international-corp-smic" target="_blank" data-smartkarma-citation="entities:14231:1" rel="noopener">Semiconductor Manufacturing International Corp (SMIC) (981 HK)</a> share price has tumbled since the start of the war, amid questions about helium supply and prices following the bombing of Qatar facilities.
</li>
</ul>


The Hong Kong market is experiencing its worst February/March period in 10 years.  Although the market has corrected amid risk-off sentiment, we expect it to hold long-term support at 24000.
The energy sector has been the clear beneficiary this year, with coal companies outperforming. 

Semiconductor Manufacturing International Corp (SMIC) (981 HK) share price has tumbled since the start of the war, amid questions about helium supply and prices following the bombing of Qatar facilities.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (March 23)

<ul>
<li>Hong Kong market pullbacks with global markets due to war and oil price uncertainty.  HSI fell below 200 DMA but holds well above long-term support.</li>
<li>Value and dividend yield factors are outperforming in 2026.  The energy sector has overtaken the materials sector as the top performer year-to-date, with a 24% return.</li>
<li>
<a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a> is rated BUY by UBS and OVERWEIGHT by JP Morgan.   It is pursuing Asia and Latin America, aiming to be the dominant brand in these regions.
</li>
</ul>


Hong Kong market pullbacks with global markets due to war and oil price uncertainty.  HSI fell below 200 DMA but holds well above long-term support.
Value and dividend yield factors are outperforming in 2026.  The energy sector has overtaken the materials sector as the top performer year-to-date, with a 24% return.

Techtronic Industries (669 HK) is rated BUY by UBS and OVERWEIGHT by JP Morgan.   It is pursuing Asia and Latin America, aiming to be the dominant brand in these regions.



BUY/SELL/HOLD: Hong Kong Market Update (March 10)

<ul>
<li>Hong Kong market is poised to break out from its consolidation, which began in October of last year.  The next resistance level for Hong Kong's Secular Bull Market is 30,000.</li>
<li>Increased strength and momentum in the high beta tech and healthcare sector, along with increased mainland buying, confirm the probability of a breakout in the near term.</li>
<li>
<a href="https://www.smartkarma.com/entities/hua-hong-semiconductor-ltd" target="_blank" data-smartkarma-citation="entities:7201:1" rel="noopener">Hua Hong Semiconductor (1347 HK)</a> has had a breakout from its continuation wedge formation pattern.  As the second largest mature node specialty foundry, the company is benefiting from on-shoring policies.
</li>
</ul>


Hong Kong market is poised to break out from its consolidation, which began in October of last year.  The next resistance level for Hong Kong's Secular Bull Market is 30,000.
Increased strength and momentum in the high beta tech and healthcare sector, along with increased mainland buying, confirm the probability of a breakout in the near term.

Hua Hong Semiconductor (1347 HK) has had a breakout from its continuation wedge formation pattern.  As the second largest mature node specialty foundry, the company is benefiting from on-shoring policies.



Technically Speaking Breakouts & Breakdowns - HONG KONG (January 13)

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

<ul>
<li>The time is right to increase exposure to the Hong Kong market</li>
<li>A confluence of factors and catalysts will drive the index higher</li>
<li>We suggest a few names that we believe will benefit.</li>
</ul>


The time is right to increase exposure to the Hong Kong market
A confluence of factors and catalysts will drive the index higher
We suggest a few names that we believe will benefit.


Tactical Trading – Increasing Hong Kong Exposure

China

Semiconductor Manufacturing International Corporation operates as a semiconductor foundry. The Company provides integrated circuit foundry and technology services including the testing, development, design, manufacturing, packaging, and sale of integrated circuits. Semiconductor Manufacturing International offers its products and services around the world.

SMIC (Semiconductor Manufacturing International Corp) (981 HK)

SMIC (Semiconductor Manufacturing International Corp)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SMIC (Semiconductor Manufacturing International Corp) (981 HK)

HK Strategy: Winners of Potentially Higher Inflation

Elevated crude oil prices are driving inflation, benefiting high dividend yield HSI constituent stocks like China Unicom, China Mobile, Link REIT,...

Osbert Tang, CFA

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (March 23)

The Hong Kong market is experiencing its worst February/March period in 10 years. Although the market has corrected amid risk-off sentiment, we...

David Mudd

BUY/SELL/HOLD: Hong Kong Market Update (March 10)

Hong Kong market pullbacks with global markets due to war and oil price uncertainty. HSI fell below 200 DMA but holds well above long-term support.

David Mudd

Technically Speaking Breakouts & Breakdowns - HONG KONG (January 13)

Hong Kong market is poised to break out from its consolidation, which began in October of last year. The next resistance level for Hong Kong's...

David Mudd

Tactical Trading – Increasing Hong Kong Exposure

Now is an opportune time to increase investments in the Hong Kong market, as various factors are aligning to propel the index upward. We discuss...

Rikki Malik

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HK Strategy: Winners of Potentially Higher Inflation

​Elevated crude oil prices are driving inflation, benefiting high dividend yield HSI constituent stocks like China Unicom, China Mobile, Link REIT,...

Osbert Tang, CFA

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (March 23)

The Hong Kong market is experiencing its worst February/March period in 10 years. Although the market has corrected amid risk-off sentiment, we...

David Mudd

BUY/SELL/HOLD: Hong Kong Market Update (March 10)

Hong Kong market pullbacks with global markets due to war and oil price uncertainty. HSI fell below 200 DMA but holds well above long-term support.

David Mudd

Technically Speaking Breakouts & Breakdowns - HONG KONG (January 13)

Hong Kong market is poised to break out from its consolidation, which began in October of last year. The next resistance level for Hong Kong's...

David Mudd

Tactical Trading – Increasing Hong Kong Exposure

​Now is an opportune time to increase investments in the Hong Kong market, as various factors are aligning to propel the index upward. We discuss...

Rikki Malik

Elevated crude oil prices are driving inflation, benefiting high dividend yield HSI constituent stocks like China Unicom, China Mobile, Link REIT,...

Now is an opportune time to increase investments in the Hong Kong market, as various factors are aligning to propel the index upward. We discuss...