Morgan Stanley selects a list of defensive Hong Kong stocks that benefit from geopolitical crises (Table)

Morgan Stanley released a report on the Asia-Pacific region, reiterating its basic scenario forecast for the Hang Seng Index at 27,500 points by December 2026, equivalent to a projected price-to-earnings ratio of 11.5 times this year; it maintains its basic scenario forecast for the China Enterprises Index at 9,700 points by December 2026, equivalent to a projected price-to-earnings ratio of 9.8 times this year; the bank maintains its basic scenario forecast for the MSCI China Index at 90 points by December 2026, equivalent to a projected price-to-earnings ratio of 12.7 times this year; and it maintains its basic scenario forecast for the CSI 300 Index at 4,840 points by December 2026, equivalent to a projected price-to-earnings ratio of 14.4 times this year.

The bank has selected a list of defensive stocks that benefit from geopolitical crises in the Asia-Pacific region (Defensive Stocks amid Geopolitical Uncertainty), and below are the Hong Kong stocks on the list, with conditions including high dividends, low volatility, and an "Overweight" investment rating from the bank:

Stocks:

China Tower (00788.HK)

Bosideng (03998.HK)

Midea (00300.HK)

CCB (00939.HK)

BOC (03988.HK)

ICBC (01398.HK)

ABC (01288.HK)

Postal Savings Bank (01658.HK)

Sinopharm (01099.HK)

BOC Aviation (02588.HK)

Wanrun Wanxiang Life (01209.HK)

Wanrun Power (00836.HK)

Hong Kong Telecommunications-SS (06823.HK)