--- title: "HSBC Research recommends focusing on the development of five major areas in China: artificial intelligence, real estate, and consumption" description: "HSBC's research report points out that the Chinese stock market will reopen after the Lunar New Year holiday, focusing on five key data points during the Spring Festival period, including developments" type: "news" locale: "en" url: "https://longbridge.com/en/news/276829141.md" published_at: "2026-02-25T03:40:51.000Z" --- # HSBC Research recommends focusing on the development of five major areas in China: artificial intelligence, real estate, and consumption > HSBC's research report points out that the Chinese stock market will reopen after the Lunar New Year holiday, focusing on five key data points during the Spring Festival period, including developments in artificial intelligence, real estate, tourism, and consumption. The bank believes that artificial intelligence and the gradual recovery of consumption are the main investment themes, and that mainland internet stocks may rebound. In terms of capital flow, a reduction in interest rate cuts may hinder capital inflows into emerging markets. In real estate, the sales volume of second-hand residential properties has increased, and tourism consumption has also seen a recovery HSBC's research report points out that the Chinese stock market will reopen after the Lunar New Year holiday, focusing on five key data points and developments that occurred during the Spring Festival, including potential sector rotation, capital flows, artificial intelligence, real estate, and developments in tourism and consumption, which investors should closely monitor. The bank believes that artificial intelligence and the slowly but gradually recovering consumption will remain the main investment themes this year. Regarding potential sector rotation, the bank indicates that recent investors have shifted their focus to newly listed companies specializing in large language models and graphics processors, while moving away from mainland internet stocks may be excessive; it believes that as full-year results are about to be announced, the subsidy war may end, and factors such as a more balanced capital expenditure on artificial intelligence and share buybacks could drive a rebound in mainland internet stocks. Additionally, the recent lower A/H share premium and the intensive IPO market in Hong Kong may trigger a rotation of funds from H shares to A shares. In terms of capital flows, federal funds futures currently suggest that the number of interest rate cuts this year will be reduced, which may hinder the rotation of funds from developed markets to emerging markets and lead to further outflows of foreign capital from the Chinese stock market. In contrast, the easing of U.S. tariffs, U.S. President Trump's planned visit to China in April, and the appreciation of the renminbi may serve as positive catalysts. Regarding artificial intelligence, the market is becoming increasingly cautious about higher capital expenditure guidance from cloud service providers and is increasingly concerned that AI agents may replace software companies, which may lead to a trend of rotation from upstream to midstream and downstream industries (however, the bank's view remains that upstream sectors will outperform). Furthermore, the market's cautious attitude towards capital expenditure reinforces the bank's preference for the domestic artificial intelligence computing power value chain. Recently, the real estate sector has shown more positive signals, including a 7.3% year-to-date increase in second-hand residential sales in 18 major cities in mainland China; comprehensive policy packages have been launched in key strategic areas such as Shanghai, Fujian, and Chongqing. In terms of tourism and consumption, HSBC's research has observed a moderate recovery in consumption, including during the Spring Festival, where domestic tourism trips and revenue reached 596 million and RMB 803 billion, respectively, with comparable year-on-year growth of 5.7% and 5.5%, while per capita consumption of RMB 1,348 remained roughly flat year-on-year but was still 9% lower than pre-pandemic levels. The wholesale price of Moutai remains stable at around RMB 1,700 per bottle. The bank's consumption team observed excellent performance in the hotel sector during the Spring Festival, while the restaurant sector met expectations, preferring leading companies in the snacks, liquor, hotel, and home electronics sectors ### Related Stocks - [512200.CN - China Southern CSI All Share Real Estate ETF](https://longbridge.com/en/quote/512200.CN.md) - [159707.CN - Hwabao WP CSI 800 Real Estate ETF](https://longbridge.com/en/quote/159707.CN.md) - [CHIQ.US - Global X China Consumer](https://longbridge.com/en/quote/CHIQ.US.md) - [159768.CN - Yinhua CSI Interior Real Estate Theme ETF](https://longbridge.com/en/quote/159768.CN.md) - [CLOU.US - Global X Cloud Computing ETF](https://longbridge.com/en/quote/CLOU.US.md) - [KBAB.US - KraneShares 2x Long BABA Daily ETF](https://longbridge.com/en/quote/KBAB.US.md) - [KWEB.US - Krne Csi China Internet](https://longbridge.com/en/quote/KWEB.US.md) - [BOTZ.US - Global X Robotics & Artificial](https://longbridge.com/en/quote/BOTZ.US.md) - [03690.HK - MEITUAN](https://longbridge.com/en/quote/03690.HK.md) - [513770.CN - Hwabao CSI HK Equities Internet ETF](https://longbridge.com/en/quote/513770.CN.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Salesforce Bulls Disregard Crash Warning | Salesforce's share prices have dropped over 30%, raising concerns despite excitement around its AI platform, Agentforce. | [Link](https://longbridge.com/en/news/276784395.md) | | ROHL Global Networks Selects Bronson.AI for Multi-Year Process and AI Modernization Program | ROHL Global Networks has selected Bronson.AI for a multi-year process and AI modernization program to enhance its digita | [Link](https://longbridge.com/en/news/276650650.md) | | "A Palliative Care Doctor": Microsoft Notches Up as Xbox Co-Founder is Suspicious of Asha Sharma | Microsoft is considering Asha Sharma to lead the Xbox division, with mixed reactions from employees. 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