Many people say that in recent years, stock markets around the world have been in a bull market, except for the A-shares which have suffered greatly. Those who say this may not have paid attention to the Hong Kong stock market. Data shows that the Hang Seng Technology Index has fallen for three consecutive years, dropping by 70%, and there is still no sign of a halt. This year alone, it has fallen by nearly 7 percentage points.

However, opportunities in the stock market are created by declines. According to the cross-regional sector rotation effect, the current low valuation of the Asian capital market is particularly advantageous, making it an excellent time for investors to bottom fish.

Firstly, the advantage of technology stocks in the Asia-Pacific market.

From an industrial perspective, the Asia-Pacific region is the global hub of the technology industry chain. China is the world's largest consumer market for integrated circuits, South Korea and Taiwan are the most important production bases for semiconductors and chips, Japan accounts for about 60% of the global semiconductor materials market, especially with a high proportion of 80% in photoresists, and India has a very developed software industry.

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According to data statistics, including Japan, more than half of the world's technology stocks come from Asia. Over the past decade, the returns of Asian technology leaders have far exceeded those of European and American technology leaders. Although the United States occupies the commanding heights of the technology industry, the production end is mainly concentrated in the Asia-Pacific region, and it is ahead of the United States in many sub-segments.

From the perspective of the middle class population, it used to take 10 years for the global middle class population to accumulate 1 billion, but now it is estimated that by 2023 at the earliest, another 1 billion can be accumulated, of which 90% will come from the Asia-Pacific region. 5G technology is the first to be popularized in the Asia-Pacific region, bringing multiple growth opportunities in industries such as industry, communication services and media, and consumption.

Secondly, "low valuation + high elasticity", ultra-high investment cost performance.

From a valuation perspective, the Hang Seng Technology Index has plummeted from a high of 11,001 points to 3,430 points, a drop of nearly 70%. It is hard to imagine that this is the drop of a broad-based index. The index plummet, inevitably leading to a downward revision of valuations, currently the most outstanding Chinese companies with the best growth potential have a valuation PE of only 21 times, which is basically the same as consumer stocks. In contrast, although the STAR 50 has also experienced a plummet, the PE is still 43 times. Overall, internet companies represented by Hong Kong stocks are currently very affordable.

From the perspective of rebound characteristics, although it has experienced a plummet, the Hang Seng Technology Index also rebounded at the beginning of this year, surging by nearly 40% in just two months. Hong Kong stocks do not have price limits, so the overall fluctuation range is higher, and the speed and strength of the rebound of high-quality assets are worth looking forward to.

At present, the U.S. economy is slowing down, and the Federal Reserve's interest rate cut cycle is about to start. Funds withdrawing from the United States will flow to A-shares and Hong Kong stocks, which are globally valued, and the Asia-Pacific region, where emerging economies are concentrated, bringing good investment opportunities.