UBS Projects 2026 HSI Target of 30,000, Favors Internet, Hardware Tech, and Brokerage Sectors, Excludes High Dividend Stocks, and Increases Investments in Certain 'Going Abroad' Concept Stocks
UBS Market Outlook: UBS anticipates a positive performance for the Chinese equity market in 2026, driven by factors such as advancements in AI, a supportive policy environment, fiscal expansion, and potential capital inflows, although the strength of these factors may diminish compared to 2025.
Target Index Projections: UBS has set a target of 100 for the MSCI China Index and 30,000 for the HSI by the end of 2026, indicating a projected upside of about 14% and an expected EPS growth of 8% for the following year.
Sector Preferences: The firm favors sectors like internet, hardware tech, and brokerage, while moving away from high dividend stocks due to reduced yields, and is adding 'going abroad' concept stocks that may benefit from global economic improvements.
Highlighted Stocks: UBS identified specific Hong Kong-listed stocks, including WUXI APPTEC, FUYAO GLASS, and CMOC, as part of its 'going abroad' strategy, reflecting a focus on companies likely to gain from international market dynamics.
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UOB Kay Hian Supports ALI HEALTH and PA GOODDOCTOR as AI Innovations and National Policies Propel China's Internet Healthcare Industry
Chinese Internet Healthcare Sector Growth: The sector is evolving with increased AI innovation from tech giants and support from national policies, such as Beijing's online consultation pilot program, despite profitability challenges.
Stock Recommendations: UOB Kay Hian maintains a positive outlook on companies like ALI HEALTH and PA GOODDOCTOR, projecting significant revenue growth driven by AI and synergies with major partners.
Top Picks in Healthcare: UOB Kay Hian's top stock picks include BEONE MEDICINES, INNOVENT BIO, and HANSOH PHARMA, highlighting their potential for growth in the Chinese healthcare market.
Investment Ratings: Various companies in the sector have received investment ratings, with several being rated as "Buy," indicating strong confidence in their future performance.
<Daily Summary> HSI Ends at 27,032, Dropping 233 Points; HSTI Finishes at 5,408, Decreasing by 91 Points; MEITUAN Falls More Than 4%; WUXI APPTEC, SHK PPT, SINOPEC CORP, CHINA RES MIXC, HK & CHINA GAS Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 233 points (0.9%) to close at 27,032, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Major stocks like Meituan, Tencent, and Xiaomi saw significant drops, with Meituan down 4.5% and Tencent down 2.3%, amidst high short selling activity.
Notable Movers: Bud APAC and Lenovo Group faced substantial losses, with Bud APAC down 5.2%, while Zijin Mining and PICC P&C were among the few gainers, with Zijin Mining up 3.4%.
High Performers: Unisound and Guofuhee experienced remarkable gains, with Unisound rising by 16.8%, indicating strong market interest in these stocks.
HSI Drops 242 Points at Midday, Driven by Technology Stocks; CN Developers and WUXI Series Surge
Market Performance: Hong Kong stocks faced a decline, with the HSI dropping 242 points (0.9%) to 27,023, while the HSCEI and HSTECH also fell by nearly 1% and 1.7%, respectively.
Tech Stocks Struggles: Major tech companies like NTES, BABA, and TENCENT saw significant drops in their share prices, with NTES down 3.8% and BABA down 2.1%, amid disappointing earnings reports and ongoing investment strategies.
Chinese Developers' Gains: Some Chinese developers, including CHINA VANKE and RONSHINECHINA, experienced gains due to reports of a potential RMB80 billion rescue package from the Shenzhen municipal government.
WUXI APPTEC's Success: WUXI APPTEC emerged as the best-performing blue chip, rising nearly 4% after Nomura raised its revenue expectations and target price, indicating strong future performance.
<Midday Update> HSI Ends Midday at 27,023, Dropping 242 Points; HSTI at 5,407, Down 92 Points; MEITUAN Falls More Than 4%; WUXI APPTEC, WUXI BIO, SHK PPT, SINOPEC CORP, and HK & CHINA GAS Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 242 points (0.9%) to 27,023, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 1.7% and 1.0%, respectively.
Active Heavyweights: Major stocks like Meituan, Tencent, Alibaba, and Xiaomi saw significant drops, with Meituan down 4.2% and Tencent down 2.6%, amidst high short selling activity.
Notable Movers: Wuxi AppTec and Wuxi Bio both hit new highs, increasing by 3.9% and 3.7%, respectively, while Bud APAC and Trip.com saw declines of 5% and 4.3%.
Short Selling Trends: High short selling ratios were observed across various stocks, with NetEase Music experiencing the largest drop of 11.9%, while Fit Hon Teng and COSCO Ship Energy saw substantial gains of over 10%.
Nomura Raises WUXI APPTEC's Target Price to HKD157.07; Anticipates Higher Revenue This Year
Positive Profit Alert: WUXI APPTEC has issued a profit alert estimating a 9.2% increase in revenue and a 142% increase in net profit for Q4 2025, reaching RMB11.7 billion and RMB7.1 billion, respectively.
FY26 Revenue Forecast: For FY26, WUXI APPTEC's revenue is expected to grow by 16% YoY to RMB52.6 billion, surpassing market expectations, while earnings are projected to rise by 3% YoY to RMB19.6 billion.
Target Price Increase: Nomura has raised WUXI APPTEC's target price from HKD132.8 to HKD157.07 and maintains a Buy rating on the stock.
Market Context: The healthcare sector in China is increasingly relying on data and earnings visibility, with a positive outlook for CDMO firms, according to G Sachs.
HSI Rises by 155 Points Driven by Surge in AI and Pharmaceutical Stocks
Market Performance: The HSI rose by 155 points (0.6%) to close at 27,183, with a total market turnover of HKD234.04 billion. The HSCEI and HSTECH also saw gains, closing at 9,242 and 5,451 respectively.
Tech Stock Movements: Major tech stocks like TENCENT and MEITUAN-W experienced declines of 1.6% and 2.5%, while KUAISHOU-W, JD-SW, and BABA-W saw increases between 1.6% and 1.9%.
AI and Pharma Stocks Surge: AI stocks such as UNISOUND and INSILICO rose significantly, with KNOWLEDGE ATLAS jumping 14.8% after JPMorgan initiated coverage. Pharma stocks also performed well, with CSPC PHARMA and INNOVENT BIO gaining between 4.7% and 5.5%.
Chip Sector Performance: SMIC gained 1.7%, while HUA HONG SEMI dipped 1.2%. Other chip-related stocks like INNOSCIENCE and BIREN TECH saw notable increases, with INNOSCIENCE rising 6.9%.
UOB Kay Hian Supports ALI HEALTH and PA GOODDOCTOR as AI Innovations and National Policies Propel China's Internet Healthcare Industry
Chinese Internet Healthcare Sector Growth: The sector is evolving with increased AI innovation from tech giants and support from national policies, such as Beijing's online consultation pilot program, despite profitability challenges.
Stock Recommendations: UOB Kay Hian maintains a positive outlook on companies like ALI HEALTH and PA GOODDOCTOR, projecting significant revenue growth driven by AI and synergies with major partners.
Top Picks in Healthcare: UOB Kay Hian's top stock picks include BEONE MEDICINES, INNOVENT BIO, and HANSOH PHARMA, highlighting their potential for growth in the Chinese healthcare market.
Investment Ratings: Various companies in the sector have received investment ratings, with several being rated as "Buy," indicating strong confidence in their future performance.
<Daily Summary> HSI Ends at 27,032, Dropping 233 Points; HSTI Finishes at 5,408, Decreasing by 91 Points; MEITUAN Falls More Than 4%; WUXI APPTEC, SHK PPT, SINOPEC CORP, CHINA RES MIXC, HK & CHINA GAS Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 233 points (0.9%) to close at 27,032, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Major stocks like Meituan, Tencent, and Xiaomi saw significant drops, with Meituan down 4.5% and Tencent down 2.3%, amidst high short selling activity.
Notable Movers: Bud APAC and Lenovo Group faced substantial losses, with Bud APAC down 5.2%, while Zijin Mining and PICC P&C were among the few gainers, with Zijin Mining up 3.4%.
High Performers: Unisound and Guofuhee experienced remarkable gains, with Unisound rising by 16.8%, indicating strong market interest in these stocks.
HSI Drops 242 Points at Midday, Driven by Technology Stocks; CN Developers and WUXI Series Surge
Market Performance: Hong Kong stocks faced a decline, with the HSI dropping 242 points (0.9%) to 27,023, while the HSCEI and HSTECH also fell by nearly 1% and 1.7%, respectively.
Tech Stocks Struggles: Major tech companies like NTES, BABA, and TENCENT saw significant drops in their share prices, with NTES down 3.8% and BABA down 2.1%, amid disappointing earnings reports and ongoing investment strategies.
Chinese Developers' Gains: Some Chinese developers, including CHINA VANKE and RONSHINECHINA, experienced gains due to reports of a potential RMB80 billion rescue package from the Shenzhen municipal government.
WUXI APPTEC's Success: WUXI APPTEC emerged as the best-performing blue chip, rising nearly 4% after Nomura raised its revenue expectations and target price, indicating strong future performance.
<Midday Update> HSI Ends Midday at 27,023, Dropping 242 Points; HSTI at 5,407, Down 92 Points; MEITUAN Falls More Than 4%; WUXI APPTEC, WUXI BIO, SHK PPT, SINOPEC CORP, and HK & CHINA GAS Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 242 points (0.9%) to 27,023, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 1.7% and 1.0%, respectively.
Active Heavyweights: Major stocks like Meituan, Tencent, Alibaba, and Xiaomi saw significant drops, with Meituan down 4.2% and Tencent down 2.6%, amidst high short selling activity.
Notable Movers: Wuxi AppTec and Wuxi Bio both hit new highs, increasing by 3.9% and 3.7%, respectively, while Bud APAC and Trip.com saw declines of 5% and 4.3%.
Short Selling Trends: High short selling ratios were observed across various stocks, with NetEase Music experiencing the largest drop of 11.9%, while Fit Hon Teng and COSCO Ship Energy saw substantial gains of over 10%.
Nomura Raises WUXI APPTEC's Target Price to HKD157.07; Anticipates Higher Revenue This Year
Positive Profit Alert: WUXI APPTEC has issued a profit alert estimating a 9.2% increase in revenue and a 142% increase in net profit for Q4 2025, reaching RMB11.7 billion and RMB7.1 billion, respectively.
FY26 Revenue Forecast: For FY26, WUXI APPTEC's revenue is expected to grow by 16% YoY to RMB52.6 billion, surpassing market expectations, while earnings are projected to rise by 3% YoY to RMB19.6 billion.
Target Price Increase: Nomura has raised WUXI APPTEC's target price from HKD132.8 to HKD157.07 and maintains a Buy rating on the stock.
Market Context: The healthcare sector in China is increasingly relying on data and earnings visibility, with a positive outlook for CDMO firms, according to G Sachs.
HSI Rises by 155 Points Driven by Surge in AI and Pharmaceutical Stocks
Market Performance: The HSI rose by 155 points (0.6%) to close at 27,183, with a total market turnover of HKD234.04 billion. The HSCEI and HSTECH also saw gains, closing at 9,242 and 5,451 respectively.
Tech Stock Movements: Major tech stocks like TENCENT and MEITUAN-W experienced declines of 1.6% and 2.5%, while KUAISHOU-W, JD-SW, and BABA-W saw increases between 1.6% and 1.9%.
AI and Pharma Stocks Surge: AI stocks such as UNISOUND and INSILICO rose significantly, with KNOWLEDGE ATLAS jumping 14.8% after JPMorgan initiated coverage. Pharma stocks also performed well, with CSPC PHARMA and INNOVENT BIO gaining between 4.7% and 5.5%.
Chip Sector Performance: SMIC gained 1.7%, while HUA HONG SEMI dipped 1.2%. Other chip-related stocks like INNOSCIENCE and BIREN TECH saw notable increases, with INNOSCIENCE rising 6.9%.
