The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that due to recent fluctuations in the Hong Kong stock and mainland stock markets, investors are paying more attention to defensive stock selection. They believe that if market conditions continue to fluctuate, traditional Hong Kong public stocks may outperform. Because traditional public stock profits are supported by the regulatory framework, they are less affected by macroeconomic factors.

The bank is optimistic about China Gas (00003). Its dividend return is about 5%, which is the highest among the Hong Kong public stocks covered by the bank. It is expected to benefit from high oil prices and upstream exposure to sustainable aviation fuels. The target price is HK$7.75, and the rating is “increased.”

The bank is also optimistic about Kunlun Energy (00135) and Xinao Energy (02688). They both have dividend returns of around 5% to 6%, and have potential catalysts such as repurchases and dividend increases. They are both rated “increase”. The target prices are HK$7.6 and HK$57, respectively. It believes that capital may rotate from growth stocks to value stocks.

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