Citibank: Raises Hang Seng Index Target to 30,000 Points by the end of 2026, expects clearer outlook for Chinese exports, prefers Hong Kong stocks

Citigroup's report pointed out that it raised its forecast for the Hang Seng Index at the end of 2026 from 28,800 to 30,000 points, as well as raised the CSI 300 Index from 4,900 to 5,300 points and MSCI China from 95 to 99 points. It is expected that the Hang Seng Index's earnings per share will increase by 9.1% year-on-year in 2026. The bank stated that the recent proposals from the central government are favorable to the market, especially during the implementation of the "15th Five-Year Plan", with clearer export prospects. Given the bank's more optimistic view on the Chinese Mainland/Hong Kong stock market, it raised its index targets to reflect expectations of accelerated earnings growth in 2026. Citigroup maintains a "buy" rating on the technology, healthcare, and internet sectors, and adds the basic materials sector. The consumer sector rating was downgraded to "neutral", and the automobile sector rating was downgraded to "sell". Compared to A-shares, the bank prefers H-shares. In its top picks for H-shares, Citigroup added Zijin Mining Group (02899), CONANT OPTICAL (02276), and Lens Technology (06613), while retaining Tencent (00700), AIA (01299), Jiangsu Hengrui Pharmaceuticals (01276), and Ctrip (09961).