Kenny Wen, Head of Investment Strategy at KGI, said that although the outlook for economic and corporate earnings growth in mainland China cannot be overly optimistic, given that the HSI's valuation remains attractive and foreign institutional investors' holdings are still underweight, it is estimated that the Hong Kong market may continue to experience seismic fluctuations.

In the belief that funds will be driven into the market once investor confidence returns, Wan targeted the HSI at 23,200 for next year.

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Wen also suggested focusing on three main themes. The first theme is stocks benefiting from the new policies from the central government. The focus stocks include CM BANK (03968.HK)  -0.250 (-0.663%)    Short selling $179.59M; Ratio 30.889%   / PING AN (02318.HK)  -0.550 (-1.187%)    Short selling $398.45M; Ratio 24.852%   , with target prices of $43/ $57.5. The second theme is stocks with low geopolitical sensitivity. The focus stocks include CHINA STATE CON (03311.HK)  -0.040 (-0.334%)    Short selling $10.49M; Ratio 21.368%   / TENCENT (00700.HK)  -4.200 (-1.025%)    Short selling $628.38M; Ratio 10.990%   / CHINA MOBILE (00941.HK)  +0.800 (+1.080%)    Short selling $497.65M; Ratio 19.091%   , with target prices of $11.9/ $507/ $80.9. The third theme is stocks with aggressive overseas business expansion. The focus stocks include TRIP.COM-S (09961.HK)  -7.000 (-1.230%)    Short selling $277.99M; Ratio 28.990%   / BYD COMPANY (01211.HK)  -6.400 (-2.383%)    Short selling $237.66M; Ratio 16.973%   , with target prices of $625.3/ $319.1.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-12-16 16:25.)