"Major Banks" CMB International lists the stock recommendation list for December (Table)

Jiaoyin International published a report stating that after the consolidation and digestion in November, Hong Kong stocks are expected to welcome a layout window for the year-end market in December. The market focus has shifted from the external environment to internal policies, with attention turning to the Central Economic Work Conference scheduled for mid-December. The initial phase of the "14th Five-Year Plan" is expected to be further refined, setting the tone for fiscal strength in 2026.

On the overseas front, the Federal Reserve's December interest rate meeting will be the last major liquidity test of the year. Coupled with the expectation that the Federal Reserve will pause its balance sheet reduction in December, the global liquidity environment remains marginally accommodative, providing a favorable time window for the recovery of risk appetite in Hong Kong stocks.

In December, Hong Kong stocks need to focus on three major variables: 1) Incremental information from the Central Economic Work Conference, as the highest-level meeting to set the tone for economic work in 2026, its statements regarding the deficit ratio, special government bond scale, and consumption stimulus policies will directly determine market risk appetite. Pay close attention to the growth target setting for the first year of the "14th Five-Year Plan." 2) The Federal Reserve's December interest rate meeting and dot plot guidance will determine whether the "last rate cut" will be completed this year. There are still differences in the market regarding "pause" or "continued cuts." 3) Year-end institutional rebalancing and liquidity friction, as the year-end approaches, the intertwining of profit-taking by institutions and positioning for next year may lead to increased volatility in certain sectors, necessitating attention to short-term disturbances caused by marginal tightening of liquidity.

The bank listed its recommended stocks for December:

Stock│Investment Rating│Target Price

ZhiFu (00778.HK)│Buy│HKD 5.92

NVIDIA (NVDA.US)│Buy│USD 245

XPeng-W (09868.HK)│Buy│HKD 134.69

3SBIO (01530.HK)│Buy│HKD 39.5

Shenzhou International (02313.HK)│Buy│HKD 84

Sungrow Power Supply (300274.SZ)│Buy│CNY 220