According to the latest information from Smart Finance and Economics APP, DBS recently released its outlook for the second half of the year for the mainland China and Hong Kong stock markets. DBS believes that with improved liquidity, Chinese stocks can rebound during the consolidation period of the property sector, giving a 12-month target price of 20,300 points for the Hang Seng Index. DBS recommends looking for investment opportunities in the internet and technology hardware industries, especially in stocks that can gain market share and enhance shareholder value. Additionally, they suggest continuing to hold stocks with high dividend yields from state-owned enterprises, as they possess defensive qualities and have the potential for inflow of funds from the southbound trading link.
DBS believes that potential interest rate cuts and continued inflow of southbound funds will be favorable factors for the Hong Kong stock market in the second half of 2024. They reiterate their optimistic view on the future performance of the Hong Kong stock market, with a basic scenario target forecast of 20,300 points for the Hang Seng Index in the next 12 months (until June 2025), expecting an earnings per share growth of 6.4%. They forecast a price-to-earnings ratio of 9.7 times for 2024, anticipating a stabilization and structural rebalancing of the Chinese economy, with authorities likely to introduce more supportive policies and improvements in liquidity conditions.
DBS outlined the investment themes for the second half of the year, with the first being actively seeking opportunities to collect high-quality stocks in industries such as internet and technology hardware, especially those that can gain market share and enhance shareholder value. The second theme is to continue holding high-yield stocks from state-owned enterprises.
DBS also provided a list of their preferred stocks in the Hong Kong market, with China Ping An (02318) being newly included to replace Ke Holdings (02423). Their preferred stocks include AAC Technologies (02018), Anta Sports (02020), China Mobile (00941), Sinopec (00386), CR Beer (00291), China Ping An, Samsonite (01910), Tencent (00700), and Trip.com (09961)

02318

601318

PNGAY

82318

Recently, DBS released its outlook for the second half of the Chinese mainland and Hong Kong stock markets. DBS believes that with improved liquidity, Chinese stocks can rebound during the consolidation period of the property sector, giving the Hang Seng Index a 12-month target price of 20,300 points

Zhitong

PING AN

Ping An

Ping An Insurance

PING AN-R

DBS reiterates Hang Seng Index 12-month target price of 20,300 points, names Ping An of China as one of the top ten preferred stocks in Hong Kong