HSBC Global Private Banking on China:
- sees China’s policy shift toward technological innovation, consumption growth, and private sector support—endorsed by the National People’s Congress (NPC)—as a catalyst for a potential re-rating of Chinese equities
- government’s 5% GDP growth target for 2025 reinforces its pro-growth stance
- China has now elevated increasing domestic consumption to the top policy priority for the year
- Beijing is doubling down on AI investment under its “AI Plus” strategy, aiming to strengthen China’s global leadership in technology
HSBC believes these policy signals bolster the case for overweight positions in Chinese equities and investment-grade bonds, particularly in internet and tech stocks.
Analysts highlight
- improving earnings expectations,
- an attractive risk-reward profile,
- and deep valuation discounts
as key factors supporting further gains.
This article was written by Eamonn Sheridan at www.forexlive.com.