Broker Name: DBS Bank (Hong Kong) Limited
Date of Report: 3 February 2026
Excerpt from DBS Bank (Hong Kong) Limited report.
Report Summary
- Despite recent volatility sparked by global monetary policy concerns and a metals market selloff, DBS maintains a positive outlook for China and Hong Kong equities, reiterating a Hang Seng Index target of 30,000.
- The optimism is underpinned by stable China macro data, RMB appreciation, earnings upgrades, lighter investor positioning, improved relative valuations, and a stable US-China geopolitical backdrop.
- Key investment themes include buying lagging industry leaders (e.g., Tencent, CATL), capitalizing on Hong Kong’s economic revival (e.g., Wharf REIC, HKEx, HSBC), and positioning for future technology champions (e.g., Lens Technology).
- Top sector preferences are tech, insurance, and selected materials, with specific stock picks such as Alibaba, BYD Electronics, CATL, Chalco, China Construction Bank, China Mobile, HKEx, Ping An Insurance, Tencent, and Wharf REIC.
- China’s property and consumption sectors are showing early signs of stabilization, while export and industrial production remain resilient.
- Foreign investor inflows into China equities have accelerated, and Southbound Stock Connect buying remained robust even during market selloffs.
- DBS highlights that the recent correction flushes out speculative capital, creating a more sustainable market backdrop for long-term investors.
- Sectors with negative outlooks include aviation, China property, and oil and gas, due to sector-specific headwinds and earnings risks.
- Clients are encouraged to monitor catalysts such as US-China relations, RMB trends, and corporate earnings for tactical opportunities and to add exposure once volatility subsides.
Above is an excerpt from a report by DBS Bank (Hong Kong) Limited. Clients of DBS Bank (Hong Kong) Limited can be the first to access the full report from the DBS website: https://www.dbs.com.hk
