CITIC Securities: Hong Kong stock mid-cap trend is expected to continue

Jinshi Data News on December 25th, CITIC Securities research report stated that since August 2024, the small and medium-cap stocks in Hong Kong have long been running out of excess returns. Although there has been a significant retreat in excess returns in the adjustment after October 8th, the small-cap stock index has once again run out of excess returns in the recent period. This is related to the continuous trading heat of small-cap stocks and the inflow of southbound funds. Historically, the phase of small and medium-cap stocks in Hong Kong running out of excess returns usually accompanies a high level of trading heat and the rapid inflow of southbound funds. Recently, the trading heat of small-cap stocks has remained high and fluctuating, and the volume of southbound funds flowing into small and medium-cap stocks has also reached a historical high and is trending upward, indicating that the market of small-cap stocks is expected to continue. From the perspective of short selling, compared to the price pressure brought by short selling, Liquidity has a stronger impact on the price of small and medium-cap stocks in Hong Kong.