Generally speaking stocks will have great investment value if they are undervalued, but the continued decline of Hong Kong stocks in the face of a vibrant and circling A-share market that is rising does confuse investors, but I think if we look at the long term, as long as the central government doesn't give up on Hong Kong, it is still worth investing in Hong Kong stocks.
The waning of Hong Kong stocks is mainly due to its own murmuring social environment, with too many social campaigns leading to high levels of mistrust among people in the two places and intensifying antagonism.
Since last year, group movements in Hong Kong have suddenly become quite violent, and surprisingly, we have always thought that Hong Kong people are representatives of reason and economy no matter what, but we never expected that their outbursts of emotion would be so strong that they would cause social cuts and unrest, which has caused Hong Kong, which is known to have a peaceful and stable social environment, to enter a crisis situation all of a sudden.
Hong Kong is a free port with its own set of operating rules, and we also believe that Hong Kong has its own way of dealing with the situation. However, the movement of the time has been over for a year, but it has not been alleviated, and the capital flow of Hong Kong's stock market is now mainly Europe, the United States and the mainland, and once the social environment is no longer stable, then the investment value of its stock market will be greatly reduced.
Another reason is the peripheral environment. With the United States cracking down on China, especially China's technology companies, many of Hong Kong's stocks are Chinese companies, and with Europe and the United States accounting for a large portion of the capital in Hong Kong's stock market, these investors will be less optimistic about Hong Kong's stock market.
Perhaps in this period of time, Hong Kong's stock market will still not have a rising trend, as long as the social environment in Hong Kong has been unable to stabilize, and the fight between China and the United States can not be eased, Hong Kong's position as a transit point between China and Europe and the United States, it will be more embarrassing, it may have taken advantage of the wind in the past, but now, with the deterioration of the regional environment, it can not be out of the picture.
But in the long run, I still believe that a momentary deterioration in the environment will always be better, and that fighting does not bring happiness, reconciliation does.