BOCI Securities Limited: Predicts that the Hang Seng Index will rise to 27,500 points by the end of the year, focusing on supply-side reforms, the large-scale infrastructure industry chain, and other areas.

The Bank of China International Research Report indicates that it is optimistic about the Hong Kong stock market in the second half of this year, believing that China's decision-making authorities have ample tools of incremental policy reserves to effectively deal with Sino-US games; it is expected that decision-making authorities will intensify the implementation of incremental policies in the second half of the year and fully release policy effects. The bank believes that the focus will be on strengthening the domestic big cycle, promoting supply-side reforms and countering vicious competition within, expanding domestic consumption demand comprehensively, vigorously promoting technological innovation and industrial upgrading, continuously consolidating the stable situation of the real estate market, maintaining stable and active capital markets, and focusing on preventing and resolving financial risks and debt risks. The bank believes that the current valuation level of the Hong Kong stock market is still attractive, predicting that the Hang Seng Index can reach 27,500 points by the end of this year, based on a forecast of a 12.2 times price-to-earnings ratio for 2025, with a premium of around 5% over the historical average price-to-earnings ratio over the past 20 years. In terms of key investment opportunities, it is recommended to focus on supply-side reforms, countering vicious competition within and the big infrastructure industry chain. In the medium to long term, it is recommended to focus on consumer leading companies with a focus on domestic demand, undervalued high-yield stocks, and the accelerated process of domestic substitution for independent brands.