Citigroup: Raises Hang Seng Index target to 20,500 points by the end of 2024

Due to the accelerated growth in China's electricity consumption, Citigroup has raised its Hang Seng Index target to 20,500 points by the end of 2024, up 3.5%, and set a new target of 22,000 points for the first half of 2025. Liu Xianda, Citigroup's China stock strategist, is optimistic about stocks that will benefit from export growth and rising commodity prices. He expects the Third Plenum to bring about 8 catalysts, with probabilities for structural reforms, cross-border trade development, state-owned enterprise reforms, real estate easing, addressing overcapacity issues, responding to an aging population, consumer recovery, and encouraging private enterprises. From an industry perspective, Liu Xianda prefers technology, industrial, basic materials, and internet sectors. He stated that contrary to his position in 2023, he is more bullish on H-shares than A-shares in 2024 because they are more sensitive to Fed rate cuts. His top picks include Pinduoduo, ASMPT, China Zhongwang, MGM China, Li Ning, and BYD