Citi has lowered its 2023 target for the Hang Seng Index to 29,600 points, with Tencent (00700.HK) and AIA (01299.HK) among its top picks for H shares.

Citi released a research report expressing cautious optimism about the outlook for China's stock market in the second half of 2026, favoring the technology and export sectors. The bank upgraded its investment rating for the insurance sector from "neutral" to "overweight." Citi expects insurance companies to benefit from higher investment returns from equities and inflows of bank deposits into insurance products. The bank set year-end 2026 target levels for the Hang Seng Index, CSI 300 Index, and MSCI China Index at 29,600 points (a 1.3% decrease from the previous target of 30,000 points), 5,600 points, and 92.0, respectively, while introducing a mid-2027 Hang Seng Index target of 30,500.

AASTOCKS16:28

CSC Financial Auto Industry Mid-Term Investment Strategy 2026: Overseas Expansion Drives Earnings Alpha, AI Empowers New Growth Beta

The expected pressure on domestic demand caused by the current policy rollback may have bottomed out. The overseas expansion of passenger and commercial vehicles demonstrates strong performance contribution, with Q1 results already fully reflecting this. Under high oil prices, the overseas expansion of new energy vehicles is expected to exceed forecasts.

Zhitong Finance08:05

Top Automakers by China NEV Exports in April: BYD 130,042 Units, Chery 57,910

CnEVPost11:28

Express News | Xiaomi, Tesla, BYD, and other companies announce price hikes

Breakings11:20

Express News | Tianqi Co., Ltd.: The robotic production line is currently in the equipment commissioning phase, with an initial planned annual capacity of 1,000 units.

BreakingsMay 13 19:54

Stocks in Hong Kong showed unusual movements as automotive stocks plummeted across the board, with Honda and Toyota's significant sales declines in China weighing down the sector.

Gelonghui, May 13 | All automobile stocks in the Hong Kong stock market fell today. APOLLO Mobility plummeted by 10%, Geely Auto dropped by 5.67%, Leapmotor and BYD fell nearly 3%, Chery Automobile and Seres declined over 2%, while XPeng Group, Great Wall Motor, and Li Auto also followed the downward trend. The decline in Hong Kong-listed automobile stocks today was mainly driven by three compounding factors: a significant drop in sales of joint venture automakers in China, mounting pressure on industry profits, and additional market concerns about specific companies like XPeng. Analysts noted that the sharp decline in April sales of two major Japanese joint ventures, Toyota and Honda, in the Chinese market represented the most direct fundamental negative factor, further exacerbating concerns about the overall automotive sector.

Gelonghui FinanceMay 13 10:45