According to a research report published by Daimo, the returns of the MSCI China Index and the Shanghai and Shenzhen 300 Index are expected to be 5% and 7%, respectively, and maintain the Hang Seng Index's price at 18,500 points at the end of next year, with a target price of 21,500 points under the most optimistic scenario and 11,350 points in the most pessimistic scenario. Daimo maintains the rating given to Chinese stocks “in sync with the market,” but is more optimistic about A-shares.

According to the above report, the basic situation target for the state-owned enterprises index at the end of next year is 6,350 points, compared to the target of 6450 points for June next year. Under the most optimistic scenario, the target price for the end of next year is 7,400 points; in the most pessimistic scenario, the target is 3,800 points.

The above report puts forward four suggestions to help investors outperform the market and monitor potential market changes; it focuses on resilient stock selection based on quality and profit/return on net assets; the bank's stock focus list and A-share theme list have taken into account top-down industry preferences and short and medium term macro cycles; and it is believed that its quantitatively screened stocks will outperform the market.

Daimo's list of stock highlights includes$Alibaba (BABA.US)$,$ANTA SPORTS (02020.HK)$,$Beijing-Shanghai High Speed Railway (601816.SH)$,$China Yangtze Power (600900.SH)$,$Focus Media Information Technology (002027.SZ)$,$HKT Trust and HKT (06823.HK)$,$Jonjee Hi-Tech Industrial And Commercial Holding (600872.SH)$,$NAURA Technology Group (002371.SZ)$,$NARI Technology (600406.SH)$,$NetEase (NTES.US)$,$SAMSONITE (01910.HK)$,$CHINA OILFIELD (02883.HK)$,$ZIJIN MINING (02899.HK)$with$ZTO Express (ZTO.US)$.

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