Zhongjin: Hang Seng Index's benchmark target for next year is 28,000 to 29,000 points.

CICC releases a report on the outlook for Hong Kong stocks next year, taking into account profits, risk-free interest rates, and risk premiums. The bank estimates that the Hang Seng Index will range from 28,000 to 29,000 points next year, with an optimistic scenario around 31,000 points and a pessimistic scenario near 21,000 points. CICC recommends overweighting AI software and hardware, electronics, chemicals, home furnishings, and innovative pharmaceuticals, while underweighting real estate, food retail, and personal care products. In addition, the bank expects China's PPI to temporarily rise at the end of this year and into the first and second quarters of next year, which could serve as an opportunity for the market to shift towards a cyclical upswing in trading.