Standard Chartered: Raises the Hang Seng Index's 12-month base case target to 28,000-30,000 points
Standard Chartered's North Asia Investment Director Zheng Zifeng stated that they continue to overweight China, preferring offshore stocks over onshore ones. The Hang Seng Index has broken through the previously expected range of 24,000-26,000 points and is currently in a consolidation phase. The upcoming Fourth Plenary Session is expected to provide insights into the direction of the 15th Five-Year Plan, and with policy support and a moderation of internal competition, the market is likely to raise profit growth forecasts. Standard Chartered has adjusted its 12-month base case target range for the Hang Seng Index to 28,000-30,000 points (29,500 points). Zheng Zifeng pointed out that the geopolitical situation remains unclear, while the transformation driven by artificial intelligence continues, leading to an overweight position in gold and global stocks. The turmoil over the government shutdown in Washington has not yet subsided; however, the Federal Reserve is resuming interest rate cuts, and U.S. companies have announced a series of multi-year artificial intelligence investment plans. The market's profit forecasts remain overly conservative, prompting an upgrade of the outlook for U.S. stocks to overweight. Additionally, considering the crowded market positions, investors are advised to wait for lower entry points to accumulate and to balance their allocations in the healthcare and technology sectors. Standard Chartered is also overweighting Asian stocks outside of Japan
According to the Zhitong Finance APP, Zheng Zifeng, the Investment Director for Standard Chartered in North Asia, stated that they continue to overweight China, preferring offshore stocks over onshore ones. The Hang Seng Index has broken through the previously expected range of 24,000-26,000 points and is currently in a consolidation phase. The upcoming Fourth Plenary Session is expected to provide insights into the direction of the 15th Five-Year Plan. With policy support and a moderation of internal competition, the market is likely to raise profit growth forecasts, and Standard Chartered has adjusted the basic scenario target range for the Hang Seng Index to 28,000-30,000 points (29,500 points).
Zheng Zifeng pointed out that the geopolitical situation remains unclear, while the transformation driven by artificial intelligence continues. They recommend overweighting gold and global stocks. Although the government shutdown crisis has not yet subsided, the Federal Reserve is resuming interest rate cuts, and U.S. companies have announced a series of multi-year artificial intelligence investment plans. The market's profit forecasts are still overly conservative, leading to an upgrade of the outlook for U.S. stocks to overweight. Additionally, considering the crowded market positions, investors are advised to wait for lower segments to accumulate and to balance their allocations in the healthcare and technology sectors. Standard Chartered also has an overweight position in Asian stocks outside of Japan
