Chinese artificial intelligence-related stocks are expected to continue driving Hong Kong and mainland markets, though the pace of growth will slow, according to investment banks.
Julius Baer projected Hong Kong’s benchmark Hang Seng Index to reach 29,500 by year-end, which would represent a 12.8 per cent advance from Thursday’s close of 26,149. The Swiss bank set a 12-month target for the mainland’s CSI 300 Index at 5,100, which would be 7.6 per cent higher than Thursday’s close of 4,737.
Citibank Hong Kong forecast that the internet and games sector would continue to benefit from AI. The US bank maintained its Hang Seng Index target at 28,800 by the end of the year.
In 2025, the Hang Seng Index jumped 28 per cent while the CSI 300 Index rose 18 per cent.
“After the surge last year, we still expect funds in the US and Europe to increase their holdings in the tech stocks traded in Hong Kong and mainland China,” said Richard Tang, China strategist and head of Hong Kong research at Julius Baer.
Tang said foreign funds were underweight in Chinese tech shares, adding that equities still represented a discount to the US “Magnificent 7”, a group of big tech firms that include Alphabet, Microsoft and Tesla.
