14th May 2026 – (Hong Kong) Citi has lowered its end‑2026 target for Hong Kong’s Hang Seng Index to 29,600, trimming its previous forecast of 30,000, while setting a mid‑2027 target of 30,500. The bank also set targets of 5,600 for the CSI 300 Index by the end of 2026 and 5,700 for the first half of 2027.
In a latest strategy report, the U.S. investment bank said it remained cautiously optimistic about Chinese equities in the second half of 2026, with a preference for technology and export‑related sectors. However, it expects mainland A‑shares to outperform Hong Kong‑listed stocks, citing their heavier weighting in technology companies and relatively ample liquidity under a low interest rate environment.
Citi maintained an overweight stance on the technology sector and highlighted several preferred Hong Kong‑listed stocks. Its top picks include Tencent Holdings (00700), AIA Group (01299), Hengrui Pharmaceuticals (01276) and Trip.com (09961). The bank has also added MMG (01208), China International Capital Corporation (03908), Montage Technology (06809) and ASMPT (00522) to its buy list.
On sector allocation, the broker continues to favour technology, basic materials, healthcare and internet shares, although it has trimmed the weighting of the internet sector in light of moderating earnings growth. Conversely, it has modestly increased exposure to financial stocks, pointing to a solid initial public offering pipeline and resilient trading turnover in Hong Kong.
Citi forecasts that earnings per share for Hang Seng constituents will grow by 9.9 per cent year on year in 2026, driven primarily by the energy and raw materials sectors. At the same time, it has revised down earnings expectations for parts of the technology, internet and automotive industries.
