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<Research>Daiwa Sees Limited Upside for HSI, Prefers HK Stocks w/ Tech Trading Opportunities Like BEIGENE
Recommend 32 Positive 38 Negative 18 |
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The results of the first round of US-China trade talks held in Geneva, Switzerland on 10-11 May far exceeded investors' expectations, Daiwa released a research report saying. The US and China agreed to reduce the reciprocal tariffs on each other since 2 April from 125% to 10% for 90 days, according to the US-China joint statement. US Treasury Secretary Scott Bessent emphasized that both sides do not want a trade decoupling, and voiced optimism about the establishment of a bilateral mechanism for continued talks. Daiwa estimated “trade optimism” to boost the Chinese stock market in the short term, with the HSI likely to be close to its March peak, and believed that there are tactical trading opportunities for “tariff-hit sectors” such as electronics, textile, shipping and electrical equipment. Therefore, the broker added LUXSHARE PRECISION(002475.SZ) and HUALI GROUP(300979.SZ) to its top pick list for Chinese stocks, and removed CHINA RES BEER (00291.HK) and others. Daiwa also picked out Hong Kong stocks looking for technical trading opportunities after the US-China trade talks, including BEIGENE (06160.HK), AAC TECH (02018.HK) and BYD ELECTRONIC (00285.HK). From a long-term perspective, Daiwa reiterated its projection that the HSI will have limited upside as the SHCI and the HSI have already exceeded its 2025 interim target and are close to its year-end target. AAStocks Financial News |
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