HSBC (0005) maintains a neutral view on mainland China and Hong Kong equities, with a preference for domestic demand-driven sector leaders, Patrick Ho, the chief investment officer of North Asia, HSBC Global Private Banking and Wealth, said.
The next key decision-making meeting that the market needs to pay close attention to is the National People’s Congress to be held in March, and the market will look for important signals of stimulating economic policies in the relevant meetings. The outlook for returns in China’s equity markets will likely depend on the size, timing and execution details of fiscal stimulus measures aimed at reviving demand, he said.
The bank retains a relatively high weight allocation to global and Asian semiconductors and technology stocks, and expects the semiconductor industries in Taiwan and South Korea to continue to grow at a high rate in 2024 and 2025.

(June Chen)