The Hang Seng Index is projected to reach 28,000 points by the end of 2026, showing a fluctuating upward trend in the second, said Patrick Ho, chief investment officer of North Asia at HSBC private bank and premier wealth on Thursday.
The end-2026 index target is primarily driven by a sustained rebound in Hong Kong's retail sector, robust property market performance, a strong IPO market, and AI development, all of which are expected to fuel profit growth for Hong Kong companies, according to Ho.
Ho mentioned that regarding the e-commerce industry, it may have bottomed out, and there is a possibility of a profit rebound in the future. He further added that these internet companies have a strong chance of improving their profit prospects if they can successfully commercialize and implement AI applications.
“As investment in AI accelerates globally, Asia is well placed to benefit given its leadership in semiconductors and rapid progress in large language models. Beyond AI, investors can also find a broadening opportunity set through income potential in bonds, alongside continued improvements in corporate governance reforms across Japan, South Korea, mainland China and Singapore,” said Ho.
The bank maintains its forecast of China’s GDP growth at 4.6 percent, while revising its US GDP growth forecast from 2.5 percent to 2.2 percent.
Meanwhile, Ho outlined HSBC private bank's four priorities for the third quarter of this year including investing in an AI-led future, positioning for security and energy independence, building portfolio resilience with multi-asset strategies and tapping into Asia’s innovation and income opportunities.
