Hong Kong Stocks Poised for Bull Market Surge in 2026: Here's What Could Drive It

The Hong Kong stock market is set to maintain strong upward momentum throughout 2026, but don’t expect a straight-line rally. According to Industrial Securities’ latest analysis, expect a pattern of fluctuating gains—think of it as climbing uphill with occasional plateaus.

Two Pillars Supporting the Bull Market

The bull market case rests on two core narratives: growth momentum aggregation and value restructuring dividends. This dual approach suggests opportunities aren’t confined to one sector or style.

On the earnings front, the numbers are compelling. Hong Kong Stock Connect constituent stocks are projected to deliver year-on-year net profit growth of 7.3% in 2026. This foundation of improving profitability matters because valuations ultimately follow earnings. When companies deliver, markets eventually recognize it.

Where the Growth Is Concentrated

Growth won’t be evenly distributed. Information technology, consumer discretionary, and healthcare sectors are expected to lead profit expansion. This sector rotation tells you where capital allocation might flow in 2026—track these three closely if you’re positioning your portfolio.

The RMB Wild Card

Here’s the external catalyst that could accelerate the bull market: a stronger RMB. As the Chinese currency appreciates, it triggers a double benefit for Hong Kong stocks—both the stocks themselves rise (asset appreciation), and foreign investors get extra returns from currency gains. This combination is already attracting global capital back to Hong Kong equities, which should steadily unlock deeper valuation recovery.

The bull market narrative for 2026 isn’t a given, but the combination of solid earnings growth, attractive valuations, and currency tailwinds suggests Hong Kong stocks have more runway ahead.