Jefferies Anticipates Earnings Growth Will Drive Returns in CN A-Shares; New Additions Include SYTECH and HIMILE SCIENCE & TECHNOLOGY
China A-share Market Performance: The China A-share market showed solid performance last year, particularly in AI, technology, and materials sectors, while domestic consumption sectors lagged, resulting in significant divergence in returns.
Growth Stocks Outlook: Growth stocks in China's A-share market performed well, with expectations that earnings growth will drive returns in 2025, following a period of PE ratio expansion.
Investment Strategy Update: Jefferies has adopted a barbell strategy focusing on reasonable price growth stocks and sustainable yield stocks, adding new targets like SYTECH and HIMILE SCIENCE & TECHNOLOGY to its investment portfolio.
Short Selling Activity: The report highlights significant short selling activity in various stocks, including POP MART and SUNNY OPTICAL, with varying short selling ratios indicating market sentiment.
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Jefferies Anticipates Earnings Growth Will Drive Returns in CN A-Shares; New Additions Include SYTECH and HIMILE SCIENCE & TECHNOLOGY
China A-share Market Performance: The China A-share market showed solid performance last year, particularly in AI, technology, and materials sectors, while domestic consumption sectors lagged, resulting in significant divergence in returns.
Growth Stocks Outlook: Growth stocks in China's A-share market performed well, with expectations that earnings growth will drive returns in 2025, following a period of PE ratio expansion.
Investment Strategy Update: Jefferies has adopted a barbell strategy focusing on reasonable price growth stocks and sustainable yield stocks, adding new targets like SYTECH and HIMILE SCIENCE & TECHNOLOGY to its investment portfolio.
Short Selling Activity: The report highlights significant short selling activity in various stocks, including POP MART and SUNNY OPTICAL, with varying short selling ratios indicating market sentiment.
Jefferies Predicts Inevitable Consolidation in CN Market; POEs Present Massive Growth Potential
China's Economic Transition: Under the "15th Five-Year Plan," China is shifting towards an AI and high-tech manufacturing era, focusing on private enterprise and presenting significant growth opportunities, as highlighted by a Jefferies research report.
Investment Themes for 2026: Jefferies identified five key investment themes for 2026, including high-growth technology stocks, companies with upwardly revised earnings forecasts, and those with sustainable yields and buyback programs.
Recommended Stocks: The report suggests various Hong Kong-listed companies for investment, such as TENCENT, ICBC, and WUXI APPTEC, based on their growth potential and financial metrics.
Focus on A-Shares and ROIC: Attention is also directed towards A-shares that may list in Hong Kong and stocks with high Return on Invested Capital (ROIC), while advising against those whose ROIC has peaked.
Jefferies Anticipates Earnings Growth Will Drive Returns in CN A-Shares; New Additions Include SYTECH and HIMILE SCIENCE & TECHNOLOGY
China A-share Market Performance: The China A-share market showed solid performance last year, particularly in AI, technology, and materials sectors, while domestic consumption sectors lagged, resulting in significant divergence in returns.
Growth Stocks Outlook: Growth stocks in China's A-share market performed well, with expectations that earnings growth will drive returns in 2025, following a period of PE ratio expansion.
Investment Strategy Update: Jefferies has adopted a barbell strategy focusing on reasonable price growth stocks and sustainable yield stocks, adding new targets like SYTECH and HIMILE SCIENCE & TECHNOLOGY to its investment portfolio.
Short Selling Activity: The report highlights significant short selling activity in various stocks, including POP MART and SUNNY OPTICAL, with varying short selling ratios indicating market sentiment.
Jefferies Predicts Inevitable Consolidation in CN Market; POEs Present Massive Growth Potential
China's Economic Transition: Under the "15th Five-Year Plan," China is shifting towards an AI and high-tech manufacturing era, focusing on private enterprise and presenting significant growth opportunities, as highlighted by a Jefferies research report.
Investment Themes for 2026: Jefferies identified five key investment themes for 2026, including high-growth technology stocks, companies with upwardly revised earnings forecasts, and those with sustainable yields and buyback programs.
Recommended Stocks: The report suggests various Hong Kong-listed companies for investment, such as TENCENT, ICBC, and WUXI APPTEC, based on their growth potential and financial metrics.
Focus on A-Shares and ROIC: Attention is also directed towards A-shares that may list in Hong Kong and stocks with high Return on Invested Capital (ROIC), while advising against those whose ROIC has peaked.
