According to Zhito Finance App, HSBC strategists are optimistic about the stocks of Chinese companies listed in Hong Kong, stating that these stocks benefit from more favorable policy rhetoric from mainland China and an improving economic outlook. HSBC strategists Herald van der Linde and Prerna Garg stated in a report that the Hang Seng China Enterprises Index may rise by 21% in 2025. They have raised the year-end target for the index from the previous 8,610 points to 8,800 points.

The strategists have also upgraded the rating for the Hong Kong stock market from 'neutral' to 'Shareholding,' while downgrading the rating for the Indian stock market from 'Shareholding' to 'neutral', and upgrading the South Korean stock market from 'Shareholding' to 'neutral'.

HSBC strategists stated that interest rate cuts, along with measures to promote tourism and revive the real estate industry, will support the Hong Kong stock market.

HSBC has raised the year-end target for the Hang Seng China Enterprises Index to 8,800 points for 2025.

The strategists stated, 'The economic outlook in mainland China has improved, and the recent shift in policy tone indicates the government's commitment to stabilizing the economy. This is a good sign for the A-share market, and we believe the Hong Kong market will benefit further.'

Investors are currently paying attention to the National People's Congress to be held in March to understand the detailed growth target and consumer stimulus plans set by the Chinese government for 2025.

Last January, HSBC predicted that the Hang Seng China Enterprises Index would rise by about 24% in 2024. The index rose by 26% that year.

These strategists stated: "Recent policy measures indicate that the risk of a sharp decline in corporate profit growth has been avoided. With households holding over $20 trillion in Cash savings, this is crucial for mitigating tail risks and restoring market confidence."

Meanwhile, HSBC has downgraded its rating on the Indian Stocks market from "Shareholding" to "Neutral" due to the slowdown in India's domestic economy and high valuations that may limit returns this year.

In recent months, the momentum of the Indian Nifty 50 Index has lost steam due to weak corporate profits and foreign capital outflows. The Indian government this week revised down its economic growth forecast for the current fiscal year to the lowest level since the pandemic.

HSBC upgraded its rating on the South Korea stock market from "Shareholding" to "Neutral" because the recent sell-off provided a "good opportunity" to increase exposure. HSBC strategists indicated that political changes in South Korea are unlikely to have a significant impact on corporate profits.