According to a report released by HSBC, the global macro environment may become the driving force for strong growth in Asia next year, especially if China's economic growth recovers. The bank expects that next year, under the leadership of China and India, the Asian stock market is expected to rise 15%, giving the Chinese stock market an “increase in holdings” rating. Furthermore, HSBC gave Hong Kong stocks a “neutral” rating. The Hang Seng Index target for the end of next year was adjusted to 19890 points, and the state-owned enterprises index target for the end of next year was adjusted from 7190 points.

HSBC believes that the Year of the Dragon will benefit Asian stock markets, and the global outlook looks promising. It is expected that global inflation will drop slightly next year, and central banks will begin to relax monetary policies. The continued rise in earnings in Asia will be a strong catalyst for regional stock markets, especially if the Chinese economy regains momentum for growth.

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