Citi raises Hang Seng Index forecast, citing improved earnings and Beijing support
US bank also says it expects the benchmark gauge to climb to 27,500 by mid-2026 and 28,800 by the end of next year
The bank’s new target implied a 3.3 per cent gain from current levels, and Citi said it expected the index to climb to 27,500 by mid-2026 and 28,800 by the end of next year. The Hang Seng Index closed at 25,938.13 on Tuesday.
Citi also raised its forecast for 2026 earnings growth for Hang Seng Index companies to 9.8 per cent from 8.1 per cent, compared with an expected 0.9 per cent gain this year. It said sectors like healthcare, insurance and advanced manufacturing would benefit from Beijing’s new policy priorities.
The upgraded forecasts come as China’s economy has been showing a mixed picture. Gross domestic product on the mainland grew 5.3 per cent in the first half, exceeding the government’s 5 per cent target, while exports rose 7.2 per cent from a year earlier in July. But consumer prices have remained flat and property prices have continued to slide.