The financial landscape in Hong Kong has experienced a notable surge since late September, driven by a combination of favorable policies designed to stimulate market activityAs evidenced by recent trends, the Hang Seng Index has climbed significantly, concluding on December 13 with an impressive year-to-date increase of 17.15%. This marks a significant turnaround, as it is the first full-year gain since 2020, igniting a new wave of interest among investors and financial analysts alike.

Examining the equities market further, statistics reveal that an astonishing 333 stocks have surged by over 50% this year, with 142 of these stocks doubling in valueNotably, the stock of Quan Shi International saw a remarkable increase of over ten times, while other companies, including Boyaa Interactive, Wan Shun Rui Qiang Group, Zheli Holdings, and Honghao International Holdings, reported increases exceeding fivefold

These figures highlight the excitement and volatility characterizing a vibrant trading environment.

To delve deeper into specific companies, Quan Shi International recently emerged from a name change from Qiaoxiong International on December 11. The company made headlines when it announced a memorandum of understanding with Pacific Commercial Network Limited on December 4, regarding potential collaboration in cryptocurrency-related ventures in Hong KongPacific Commercial Network is the primary operator of Crypto Panda, which focuses on over-the-counter transactions and offers USDT exchange services—a sector experiencing burgeoning interest amid heightened global interest in cryptocurrencies.

Boyaa Interactive, a leading player in the cryptocurrency stock market, has witnessed staggering growth, with its stock price rallying by 8.70 times this yearRecently, the company disclosed its investment in BounceBit, a Web3 asset management platform, acquiring 4.2 million BB tokens

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BounceBit stands out for launching the world’s first Bitcoin staking public chain and CeDeFi infrastructure, intending to unlock Bitcoin’s network value and gain a spot in the Hong Kong Cyberport incubation programThe BB tokens are set to debut on Binance, with a market capitalization nearing $173 million, positioning them as a noteworthy player in the cryptocurrency ecosystem.

Additionally, the momentum in the Hong Kong stock market has catalyzed a significant upswing in brokerage stocksNotably, Shenwan Hongyuan Hong Kong has emerged as a prominent star in this sector, doubling its stock price in the current market surgeSimilarly, China Merchants Securities has distinguished itself with solid strength and precise market strategies, achieving a remarkable doubling of its stock price along the wayFirst Shanghai Capital has not lagged behind, displaying robust growth momentum that propelled its stock price to remarkable heights, completing the pattern of exemplary performance among brokerage firms.

The consumer discretionary segment has also showcased a vibrant activity, with companies like Xixiangfeng Group capitalizing on unique business models that closely align with prevailing consumer trends

Its stock soared like a rocket, also realizing a doubling achievement that has captured the attention of investorsPop Mart, combining trend culture and creative products, continues to attract a loyal following among consumers, particularly among younger demographicsThe brand's influence is steadily rising in the market, driving its stock price to new heights under the booming trend in consumer stocksSimilarly, Trip.com Group, a juggernaut in the online travel industry, benefited substantially as the tourism market gradually rebounds and the company innovates service offerings, also achieving noteworthy double stock value performance—an affirmation of its robust competitive edge and the rekindling momentum within the industry.

In a detailed analysis, Galaxy Securities pointed out that the overall valuation of the Hong Kong stock market remains relatively low; however, the resilience of corporate profitability amid market fluctuations presents a silver lining

The upcoming trends will heavily rely on the efficacy of domestic growth policies aimed at stabilizing economic recoveryFor investors, the technology sector continues to harbor promising investment opportunities, particularly aligned with the strategic priority of self-sufficiencyWith a host of policies aimed at boosting domestic demand and stabilizing consumption taking shape, undervalued consumer stocks in Hong Kong are viewed positively, with anticipations of a substantial upturn on the horizon.

Moreover, amidst continuing global uncertainties that disrupt markets, strategies centered on high dividend yields in Hong Kong remain uniquely compellingState-owned enterprises, in particular, are spotlighted as they offer stable operational conditions, robust asset strength, and favorable dividend distribution rates, all major considerations for investors seeking steady returns amid market turbulence.

Regarding the outlook for Hong Kong stocks in 2025, Guotai Junan Hong Kong anticipates that the Federal Reserve will proceed with interest rate cuts into 2025, leading to a gradual improvement in the valuation profile of Hong Kong equities