Citi: Yu Hang Seng Index targets 25,000 points by the end of this year, calling for an increase in China's Internet, technology and consumer sectors

On July 17, Citi released a report on its Asian stock strategy, saying that despite the fluctuations in the macro environment, Asian stock markets still outperform their global counterparts, and the short-term outlook is uncertain due to the US tariff issue. However, Citi stock strategists still hold a constructive view on the medium-term outlook. The bank expects that the MSCI Asia (excluding Japan) index will have a return of about 7% by 2026, which is equivalent to a forecast price-to-earnings ratio of 14 times. The bank is optimistic about the Chinese and Korean markets in Asian stocks. Its companies have a better trend of earnings per share revision, reasonable valuation, and benefit from structural themes (artificial intelligence, corporate governance reform). < b > The bank targets 25,000 points for the Hang Seng Index by the end of this year and 26,000 points by the middle of next year. The CSI 300 Index targets 4,200 points by the end of this year and 4,350 points by the middle of next year. The MSCI China Index targets 79 points by the end of this year and 82 points by the middle of next year. Citi said that in the MSCI China industry weighted model portfolio, the bank raised the consumer sector from neutral to overweight, favoring domestic related stocks and preparing for potential government stimulus. It downgraded the transportation sector from overweight to neutral, due to the downside risk of global freight volume in the context of increased US trade tariffs. < b > The bank has an overweight rating on China's Internet, technology and consumer sectors.