Divergent targets for Hang Seng

The Hang Seng Index will reach 28,000 at the end of this year, Bright Smart Securities & Commodities (1428) chairman Peter Yip Mou-lum predicts. 

Head of research, Stanley Chik Yiu-fai, said the HSI may rise to 25,500-26,000 in short term. The index will be volatile between 20,000 and 26,000 in the next half.

Edmond Hui, chief executive, said Hong Kong stocks are mainly supported by “northern capital.” Also, he said the social unrest will ease due to the national security law and the coronavirus epidemic will be contained.

Hui said the economic rebound depends on the financial sector.

He expects the quota of the Hong Kong Stock Connect will be extended.

Yip expects more small local and Chinese brokers will be eliminated gradually.

Meanwhile, Chik said the economy may not have a v-shaped recovery.