HSBC: "Overweight" rating for Chinese stock market, Hang Seng Index target adjusted to 19,890 points by the end of next year.
HSBC's report suggests that the global macro environment may become a driving force for strong growth in Asia next year, especially if the Chinese economy recovers.
Zhitong App learned that HSBC has released a report stating that the global macro environment may become a driving force for strong growth in Asia next year, especially if the Chinese economy recovers. The bank expects that under the leadership of China and India, Asian stock markets are expected to rise by 15% next year, giving a "buy" rating to the Chinese stock market. In addition, HSBC gives a "neutral" rating to Hong Kong stocks, with a year-end target for the Hang Seng Index adjusted to 19,890 points, and a year-end target for the state-owned enterprise index adjusted to 7,190 points.
HSBC believes that the Year of the Dragon will be beneficial to Asian stock markets, and the global outlook looks hopeful. It is expected that global inflation will slightly decrease next year, and central banks around the world will begin to loosen monetary policy. The continuous increase in profits in Asia will be a strong catalyst for the regional stock markets, especially if the Chinese economy regains growth momentum.