The Hang Seng Index could reach 20,000 points late next year - about 60 per cent higher than present levels - if the market overshoots on a series of positive factors, according to CLSA Global Emerging Markets. Analyst Dio Wong said in a report that 20,000 was not a fundamental call, but was possible based on a combination of falling interest rates late next year, a growing economy and positive expectations for the property market. 'Throw in fledgling signs of [mainland] growth engineered from a mild [yuan] devaluation and the chance for overshoot is even higher,' Mr Wong said. CLSA's fair value for October next year is 16,300 points, based on a target three-month interbank offered rate at 5.9 per cent and with HSBC Holdings' share price at $118. The best performing sectors are expected to be property and telecommunications; both to rise 35 per cent. The worst would be power, up 15 per cent, the report said. According to the investment bank, the backdrop for Hong Kong in a year's time will include an easing cycle for United States interest rates and the subsequent lowering of domestic rates. 'The current fears of overheating in the US economy will, in 12 months' time, have been well priced in with the Federal Reserve past the peak in its tightening cycle,' CLSA said.