HSBC Research report pointed out that the market focus may shift from policies to fundamentals, and market momentum will return to stock selection. The bank detailed six industries benefiting from stimulus policies.

HSBC Research detailed six industries benefiting from stimulus policies. For consumers: baijiu, household appliances, and furniture sub-industries will benefit from future consumption stimulus policies and subsidies for old-for-new consumption. Electronic consumer goods: the industry's supply chain is ready and can benefit from consumption stimulus policies. Industrial: widespread equipment upgrades are expected to occur from the second half of this year to next year. Medical equipment: Due to increased public investment by the government in hospital infrastructure to improve social security and retirement service levels, the procurement and demand for medical equipment will remain strong, especially driven by updates of domestic medical equipment.

Chemicals: Fiscal stimulus policies should support infrastructure development and consumer recovery, although the transformation of policies into actual intermediate chemicals demand will still take some time. Software: With more debt conversions assisting local governments, it is expected that government spending on information technology software will gradually increase from an extremely low 20% to around 30% in the medium to long term of the companies covered by the bank.

HSBC Research reiterated its target for the SSE Composite Index, CSI 300 Index, and SZSE Component Index as 3,800 points, 4,700 points, and 12,000 points, indicating an upward potential of 16% to 19%. However, the bank pointed out the potential risks of rebounds, including the surge in buying pressure from retail investors and selling by corporate insiders.