UOB Kay Hian: Greater China top picks include DiDi (DIDIY.US), SINO LAND (00083), and TRIP.COM-S (09961); expects continued market volatility in October.

UOB Kay Hian released a research report stating that Chinese equities recorded declines in September, with the Hang Seng Index and the MSCI China Index falling 3.7% and 4.7% month-on-month respectively. Due to rising US Treasury yields, high energy prices, and unresolved Middle East conflicts, the market may continue to be volatile in October, and global investors may also turn risk-averse ahead of the Israeli and US elections. It is currently unclear whether this situation will lead to global funds flowing back to Hong Kong. The firm continues to focus on stocks with short-term catalysts, adding DiDi (DIDIY.US), SINO LAND (00083), and TRIP.COM-S (09961) to its "Buy" list, and advises investors to exit COWELL (01415), Han's Laser Technology Industry Group (002008.SZ), and Zhejiang Shuanghuan Driveline (002472.SZ) with stop-losses. UOB Kay Hian's current recommended stock list includes BABA-W (09988), ASMPT (00522), BYD Company Limited (01211), DiDi, Foxconn Industrial Internet (601138.SH), INNOVENT BIO (01801), NAURA Technology Group (002371.SZ), NTES-S (09999), SINO LAND, TENCENT (00700), and Trip.com Group Ltd. Sponsored ADR, all rated "Buy," with target prices of HK$188, HK$211, HK$150, US$6.4, RMB89.5, HK$132, RMB930, HK$252, HK$14, HK$608, and HK$508 respectively. UOB Kay Hian is bullish on Alibaba Group Holding Limited Sponsored ADR benefiting from accelerated AI monetization, in-house chips and cloud infrastructure, with instant retail unit economics also continuing to improve; it expects ASMPT's advanced packaging tools to benefit from strong demand for TCB and photonics; it forecasts that BYD Company Limited's third-quarter sales volume and adjusted profit will grow significantly year-on-year; and Tencent will continue to be supported by its resilient gaming business and AI ecosystem expansion.