Broker Name: China Galaxy International Securities (Hong Kong) Co., Limited
Date of Report: January 19, 2026
Excerpt from China Galaxy International Securities report.
Report Summary
- Hong Kong equities are expected to achieve “higher highs” in early 2026, driven by resilient southbound inflows, global diversification amid US policy uncertainty, and milestones in Agentic AI applications.
- AI development is shifting from conversational to agentic capabilities, with Alibaba and other large-cap internet firms positioned to benefit from commercialisation and monetisation opportunities.
- Southbound investors’ demand remains strong, supported by liquidity and differentiated investment themes, while global investors are diversifying into Asia EM stocks due to US policy risks.
- Recent regulatory tightening, such as higher margin requirements and an anti-trust probe into Trip.com, is seen as moderate and idiosyncratic, unlikely to derail the overall market uptrend but may add short-term volatility.
- Hang Seng Index trades above its 10-year historical average P/E, yet there is further room for valuation expansion compared to regional peers; 2026 index target stands at 29,500 points.
- Sector performance YTD is led by Healthcare and Materials, while Telecom and Utilities lag; high conviction stock picks include Tencent, Alibaba, Xiaomi, CATL, and others.
Above is an excerpt from a report by China Galaxy International Securities (Hong Kong) Co., Limited. Clients of China Galaxy International Securities can be the first to access the full report from the China Galaxy International Securities website : https://www.chinastock.com.hk
