Everbright Securities International: The NASDAQ has not bottomed out in the short term and is optimistic about leading Chinese technology stocks

The Zhitong Finance App learned that US stocks were under strong selling pressure. The S&P 500 index and the Nasdaq index fell more than 4% and 5% respectively in a single day last Thursday (5th). Tang Lihong, an international global market and foreign exchange strategist at Everbright Securities, said that the NASDAQ may not have bottomed out in the short term, so investors don't need to rush to bottom out.

Tang Lihong pointed out that the NASDAQ has been retracted by more than 10% many times in history, and it often takes about 3 months to see a more obvious rebound. The global AI sector has been rising for more than 2 years, and there is clearly a “killing valuation” situation today.

She expects that in the context of estimating that US President Trump's AI policy will be blocked in the next 2 years, the trend of AI stock adjustments will continue for the next 2 weeks, and the NASDAQ has yet to initially bottom out. Combined with the greater chance that the Federal Reserve will raise interest rates in December, investors should not rush to take a break now.

However, Tang Lihong is also optimistic about the prospects of Chinese technology stocks, but it is limited to leading technology stocks. She believes that whenever US AI stocks weaken, capital often flows into the Hong Kong stock market. The rise in the Hang Seng Index last week also reflects this countercyclical state. It is expected that the tightening of capital outflows from the Mainland will benefit AH stock market performance. Currently, mainland policies have encouraged enterprises to repurchase. If more favorable policies are introduced, it is expected to support market performance.

She added that due to the expectation that US stocks, Japanese stocks, and Korean stocks will continue to adjust in the short term, the performance of Hong Kong stocks is expected to be relatively resistant to decline. It is recommended to focus on leading technology stocks such as Alibaba (09988), JD (09618), and Xiaomi (01810).