Singapore Bank: Expects the US to cut interest rates twice this year, Hang Seng Index target at 20,600 points in the next 12 months
Singapore Bank's Hong Kong Branch's China Stock Strategist, Huo Huimin, estimates that the Hang Seng Index's target for the next 12 months is 20,600 points. This is mainly based on the expectation that the United States will cut interest rates twice this year, coupled with the "soft landing" of the U.S. economy, which will provide strong support for corporate profits. She stated that she maintains a neutral allocation for the stock markets in the United States, Europe, and Japan. For markets in the Asia-Pacific region excluding Japan, she maintains an overweight allocation. Huo Huimin believes that the advantage of the Hong Kong A-share market lies in the recent encouragement of scientific and technological innovation and the development of emerging industries during the Third Plenary Session, which will drive the country's economic growth. At the same time, local government finances are also supportive, which she believes will be a driving force for future medium to long-term growth. Deng Yongjian, Chief Investment Officer of Singapore Bank's Hong Kong Branch, stated that after two interest rate cuts in the second half of the year, he believes that the overall macro environment will have a positive impact on long-term investment opportunities. However, short-term risk factors will gradually increase. He continued to point out that the current view on the Hong Kong A-share market remains neutral to preference, mainly due to lower valuations compared to other markets, while fundamentals are slowly improving. He holds a neutral view on bonds, mainly due to fluctuations in U.S. interest rates. Additionally, he believes that high-security assets, such as gold, should also be included to safeguard the entire asset allocation portfolio
According to the latest information from the Zhitong Finance and Economics APP, Ho Wai Man, the China stock strategist at the Singapore Bank's Hong Kong branch, estimates that the Hang Seng Index's target for the next 12 months is 20,600 points. This is mainly based on the expectation that the United States will cut interest rates twice this year, coupled with the "soft landing" of the U.S. economy, which will provide strong support for corporate profits. She stated that she maintains a neutral allocation for the stock markets in the United States, Europe, and Japan, while maintaining an overweight allocation for markets in the Asia-Pacific region excluding Japan.
Ho Wai Man believes that the advantage of the Hong Kong A-share market lies in the recent Third Plenum's encouragement of the development of science, technology, and emerging industries to support the country's economic growth momentum. At the same time, there is also support from local government finances, which she believes will be a driving force for long-term growth in the future.
Deng Yongjian, Chief Investment Officer at the Singapore Bank's Hong Kong branch, stated that after two interest rate cuts in the second half of the year, he believes that the overall macro environment will have a positive impact on long-term investment opportunities. However, short-term risk factors will gradually increase.
He further pointed out that the current view on the Hong Kong A-share market remains neutral with a slight preference, mainly due to lower valuations compared to other markets and improving fundamentals. He holds a neutral view on bonds, mainly due to fluctuations in U.S. interest rates. Additionally, he believes that high-security assets such as gold should be added to safeguard the entire asset allocation portfolio