Citigroup: The Hang Seng Index is expected to reach 25,000 points by the end of this year, calling for increased holdings in Chinese internet, technology, and consumer sectors.

Citigroup has released a report on Asian stocks, stating that despite macroeconomic volatility, Asian stock markets continue to outperform global peers. The uncertainty of US tariffs makes short-term prospects unclear, but Citigroup's stock strategists remain constructive on the medium-term outlook. The bank expects the MSCI Asia Index to have a return of approximately 7% by mid-2026, with a forecasted P/E ratio of 14x. Citigroup is optimistic about the Chinese and Korean markets within Asian stocks, as their companies have good earnings forecasts, reasonable valuations, and benefit from structural themes. The bank's year-end target for the Hang Seng Index is 25,000 points, reaching 26,000 points by mid-next year. The year-end target for the Shanghai and Shenzhen 300 Index is 4,200 points, rising to 4,350 points by mid-next year. The year-end target for the MSCI China Index is 79 points, reaching 82 points by mid-next year. In Citigroup's MSCI China sector weight model portfolio, the bank has upgraded the consumer sector from "neutral" to "overweight", favoring domestic related stocks in preparation for potential government stimulation; the transportation sector has been downgraded from overweight to "neutral", due to downside risks in global freight volumes amidst increased US trade tariffs. Citigroup has a "overweight" rating on the Chinese internet, technology, and consumer sectors.