Hong Kong bourse is in a favorable window period with multiple positives resonating, BOCOMI said in a Hong Kong stock strategy report. The technology sector was forecast to become a key engine for the next round of upward movement: (1) The external environment tends to stabilize. Geopolitical situations are generally controllable, with relatively limited spillover risks. Tariff negotiations are paused until July and August, providing a buffer period for the market.

Currently, tariff negotiations between the US and non-US countries seem to be at an impasse, making it unlikely to reach large-scale trade agreements in the short term, with the possibility of tariff issues continuing to be delayed and gradually weakened. Meanwhile, Trump's policy focus is shifting from external to internal due to domestic issues like the tax cut bill, further reducing the possibility of external policy shocks.

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(2) The liquidity environment is favorable. The liquidity in the Hong Kong bourse is abundant in the short term. Although this state may be difficult to sustain in the medium term, it can still provide sufficient upward momentum for Hong Kong stocks in the short term. Moreover, the recent active listing of IPOs continues to inject new investment themes and emotional catalysts into the market.

(3) The improvement in risk sentiment and ample liquidity provide the necessary foundation for the next stage of the technology stock rally, currently only awaiting narrative theme catalysts.

The moderate congestion state of Hong Kong stocks provides an ideal allocation window for investors at the moment, especially against the backdrop of fully released valuation pressure in the technology sector.

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BOCOMI believed that for Hong Kong bourse to transition from a structural market to a broader comprehensive rise, stronger fundamental support and policy catalysts are needed to drive a full recovery in market sentiment and a drastic increase in participation. Once the catalytic conditions are met, Hong Kong stocks were expected to achieve an effective transition from horizontal consolidation to an uptrend movement.