<div id="readability-page-1"><div>JPM released a report stating that, supported by synchronized progress in cyclical recovery and a favorable liquidity environment, the MSCI Hong Kong Index has risen 13% year to date, outperforming major offshore China equity benchmarks (MSCI China Index down 5%, HSI up 1%). Hong Kongs recovery is broad-based, starting from a low base and spanning real estate (secondary home prices rebounded 15% from the trough), financials (robust financing and trading activities), and consumption (retail sales in 1Q26 grew 12% YoY), driving an 11% upward revision in forward EPS forecasts since 2025.Looking ahead, the banks cyclical analysis indicates that Hong Kong is transitioning from the early to mid-cycle stage. While this may moderate the pace of gains, it should support a more sustainable growth trajectory. Beyond traditional cyclical sectors, Hong Kongs role as an offshore financing hub is increasingly benefiting from Chinas technology upgrade and overseas expansion plans. Since 2025, advanced industries have accounted for about 72% of IPO fundraising in Hong Kong, reshaping the listing structure and investor base, while reinforcing wealth effects and growth-oriented capital inflows. Amid rising geopolitical uncertainties, Chief Executive John Lee also emphasized Hong Kongs potential to attract capital driven by diversification and safety considerations.Given the favorable fundamental outlook and liquidity conditions, the bank raised its base/bull/bear case targets for the MSCI Hong Kong Index to 16,500 / 17,300 / 14,500, implying potential changes of 7% / 12% / -6% from current levels, respectively. The bank upgraded the real estate sector to Overweight, adjusted utilities to Neutral, with funding sourced from downgrading consumer discretionary to Underweight. Its top picks include HKEX (00388.HK) -0.800 (-0.195%) Short selling $235.83M; Ratio 14.356% and AIA (01299.HK) -0.200 (-0.231%) Short selling $457.07M; Ratio 23.313% (benefiting from capital market leverage and improved wealth effects), TECHTRONIC IND (00669.HK) -1.000 (-0.846%) Short selling $229.79M; Ratio 42.405% (with upside potential related to artificial intelligence and resilient US demand), as well as SHK PPT (00016.HK) -0.900 (-0.658%) Short selling $356.54M; Ratio 30.981% and LINK REIT (00823.HK) +0.400 (+0.976%) Short selling $88.41M; Ratio 20.596% (on expectations of an improving property cycle). The MSCI Hong Kong Index is currently trading at 15.3x forward P/E, only 0.3 standard deviations above its 10-year average, while market consensus forecasts EPS growth of 16% and 5.4% for 2026 and 2027, respectively.(ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-18 16:25.)</div></div>

00388

00669

00016

00823

01299

JPM has raised its MSCI Hong Kong Index target to 16,500, citing a 13% year-to-date increase driven by broad-based recovery in real estate, financials, and consumption. The bank upgraded the real estate sector to Overweight and highlighted top picks including HKEX, AIA, TECHTRONIC IND, SHK PPT, and LINK REIT. The index is currently trading at 15.3x forward P/E, with expected EPS growth of 16% and 5.4% for 2026 and 2027, respectively.

AASTOCKS News

HKEX

TECHTRONIC IND

SHK PPT

LINK REIT

JPM Raises MSCI Hong Kong Index Base TP to 16,500; Top Picks HKEX , AIA , TECHTRONIC IND , SHK PPT , LINK REIT