Hong Kong’s market is currently undervalued, but conservative investors may want to stay on the sidelines for now before dipping their toes back in, said Kenny Wen from Everbright Sun Hung Kai.

“If you are relatively conservative, I would say you can take a wait-and-see approach, especially if you’re already holding 40%, 50% stocks,” Wen, wealth management strategist at the firm, told CNBC’s “Street Signs Asia” on Wednesday.

He said the market, driven by sentiment surrounding issues such as debt-ridden developer China Evergrande Group, is “still highly uncertain.”

To investors who are “relatively aggressive,” Wen said: “I do agree now the Hong Kong market is undervalued, so you can start to build up your portfolio.”

As of its Wednesday’s close, the benchmark Hang Seng index in Hong Kong was around 23% lower than its February high. In the third quarter alone, the index tumbled nearly 15% for the period.