HSBC analysts said that amidst continued tensions in the Middle East, investors should seek excess returns in the Chinese A-share market and seize beta opportunities in Hong Kong stocks following recent pullbacks in technology shares. Analysts, including Steven Sun, wrote in a report that China's stock market has a lower correlation with global stock markets, stronger supply chain resilience, and started the year robustly based on key economic activity indicators, all of which are advantages for China amid Middle East tensions. Many Chinese companies are global leaders in alternative energy and energy storage, and a surge in oil prices will benefit them. HSBC maintained its year-end 2026 targets for the Shanghai Composite Index and CSI 300 Index unchanged at 4,500 points and 5,400 points, respectively. (Bloomberg)
