China International: Predicts Hong Kong Stock Market to Reach 27,500 Points by Year-End, Focusing on Supply-Side Reforms and Key Industries!
CGTN July 28｜China International Research Report forecasts a positive outlook for the Hong Kong stock market in the second half of the year, believing that China's policymakers have a rich arsenal of incremental policy tools to effectively respond to the US-China trade tensions; expects policymakers to step up implementing incremental policies and fully release their effects. The report believes that the focus will be on strengthening domestic circulation, promoting supply-side reforms and anti-price competition, comprehensively expanding domestic consumption demand, vigorously driving technological innovation and upgrading industries, continuously consolidating a stable market outlook for real estate, continuously stabilizing and vibrant capital markets, and emphasizing risk prevention and mitigation of financial risks, debt risks, etc.
The report believes that the current Hong Kong stock market valuation level is still attractive, predicts that the Hang Seng Index can reach 27,500 points by year-end, based on a forecast price-to-earnings ratio of 12.2 times for 2025, slightly higher than the historical average price-to-earnings ratio over the past 20 years. Key investment opportunities include focusing on supply-side reforms, anti-price competition, and key industries such as infrastructure construction. For the medium to long term, it is recommended to focus on consumer-oriented companies with low valuations and high yields, and self-reliant brands that are accelerating their domestic substitution process.