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<Research>BOCOMI Foresees HK Bourse to Keep 'Slow Bull' into 2026
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The global economy resilience in 2025 broadly beats expectations as set in the beginning of the year; the AI technology cycle is not yet over; and policy consistency is maintained, a report by BOCOM International wrote. The strategic moves made in 2025 lay the foundation for continued progress in 2026. Whether it's the continuation of loose monetary policy, the proactive fiscal policy, or the strategic focus of industrial policy, all will continue to play a role in 2026, serving as important anchors for investment strategies, opined the broker. Looking ahead to 2026, as the external environment returns to order and certainty increases, risk appetite will rise, and the core logic of asset allocation will shift towards a balance between offense and defense.

Regarding Hong Kong bourse, BOCOM International pointed out that earnings are in sight, and a slow bull market will persist. Valuations are within a reasonable range, offering outstanding value; the liquidity environment continues to improve, with southbound and overseas funds returning; structural highlights of the Chinese economy, including AI technology, anti-involution, and domestic demand recovery, are expected to begin to materialize in terms of earnings.

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