Deng Haiqing: Interest rate hikes have a great lethality for US stocks

On September 21-22, in order to further enhance the international competitiveness of the Guangdong-Hong Kong-Macao Greater Bay Area, in the context of increasingly close cooperation between the Mainland and Hong Kong and Macao financial markets, the "Fenghuang Bay District Finance Forum 2022" was held in Hong Kong and the Mainland. Satellite TV and Phoenix.com have jointly launched and received support from more than ten academic institutions. Focusing on the theme of "Change Bureau and Confidence", multiple forums are set up to explore important issues such as global economic challenges under the big change, the Dagang area mission under China Financial Open, the construction of the Guangdong -Hong Kong -Macao Greater Bay Area, the Hong Kong capital market leadership and driving driving Essence

In the forum "Multi -level capital market construction and high -quality development of enterprises", Deng Haiqing, deputy general manager and chief economist of AVIC Fund, said that in the past, investors mainly invested in US stocks in China. The previous valuation of stocks in the U.S. stocks is higher than that of the Chinese market. On the other hand, because China's Internet companies have basically chosen to be listed in the United States or Hong Kong, at that time the domestic capital market may be more focused on listed companies in traditional fields.

Deng Haiqing also said that the valuation of U.S. stocks itself is still at a relatively high level. Now everyone basically believes that the valuation of the United States is not sustainable. In the past, U.S. stocks, including Chinese stocks listed in U.S. stocks, were valued at high due to the expansion of the Federal Reserve, including loose QE policies. But now the high inflation in the United States has begun to become ill, and the Federal Reserve's interest rate hike is almost an imperative thing, which is very large for the valuation of US stocks.

Regarding Hong Kong stocks, Deng Haiqing believes that the Hong Kong market is mainly Hong Kong dollars staring at the US dollar, which is the exchange rate system. The expected expectations of the Fed's currency tightening have a lower valuation of Hong Kong stocks to a certain extent. "From the perspective of valuation, the overall valuation of A shares is relatively obvious compared to U.S. stocks. In the Hong Kong market, the valuation of domestic -funded companies is actually at a very low level, so the investment value is relatively obvious." Deng Haiqing said said Essence

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