In recent interview with Ausbiz, our CIO Angus Geddes noticed a big shift in Chinese and Hong Kong stocks.

• The recent rally in these markets is likely due to profit-taking following substantial gains.
• China stimulus: The Chinese government is expected to introduce a second round of stimulus measures to stabilize the floundering economy and stock market.
• Investment opportunities: Despite the recent rally, benchmarks in China and Hong Kong remain below levels from 4-5 years ago, presenting a potential value opportunity.
• Stocks to watch: Tencent (HKG: 0700) and Alibaba (HKG: 9988) are recommended due to their resilience, growth, and relatively cheap valuations.
• Australian resources: The expected stimulus from China could positively impact Australia’s resource sector, making stocks like BHP (ASX:BHP) and Rio (ASX:RIO) attractive investments.