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<Research>UBS Sets 2026 HSI Target at 30,000, Prefers Internet, Hardware Tech, Broker Sectors, Removes High Div. Stocks, Adds Holdings for Some 'Going Abroad' Concept Stocks
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UBS released a research report expecting that the Chinese equity market will experience positive performance again in 2026, mainly benefiting from the continuation of several favorable factors in 2025, including: (1) advancements in innovation, particularly in the field of AI; (2) a relaxed policy environment for private enterprises and capital markets; (3) continued fiscal expansion and abundant liquidity under a loose monetary policy; (4) potential capital inflows from domestic and foreign institutional investors. However, the driving force of these factors may not be as strong as in 2025, making it difficult for valuation multiples to expand significantly again. UBS set the target for the MSCI China Index at 100 by the end of 2026, equivalent to a projected 2026 PE ratio of 15.5x, implying about 14% upside from current levels. The broker also set 2026 HSI target at 30,000, equivalent to a forecasted 2026 PE ratio of 13.5x, with an expected EPS growth of 8% next year. UBS continued to favor the internet, hardware tech and broker sectors, while removing high dividend stocks as their yield has been bid down and adding holdings for some 'going abroad' concept stocks benefiting from global economic improvement next year. UBS listed some 'going abroad' concept stocks, including Hong Kong-listed shares such as WUXI APPTEC (02359.HK), FUYAO GLASS (03606.HK) and CMOC (03993.HK). AASTOCKS Financial News Website: www.aastocks.com |
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