＜Research＞First Shanghai: HSI May Rise to 21,000 in 2H, Eyes High Div. Yielders, Techs, High-end Manufacturers

　　First Shanghai projected the HSI's 2024 P/E to be capped at 10x and floored at 8x, corresponding to a target range of 17,000-21,000. The HSCEI's 2024 P/E was estimated to be capped at 9x and floored at 8x, corresponding to a target range of 6,000-7,200. Compared to the current index levels, the HSI and HSCEI still have 20% and 15% upsides. In terms of investment strategy, the broker focused on three major investment sectors: high-dividend yielders, dotcoms and high-end manufacturing industry chain companies.

　　As of 10 July 2024, the average hike in the top ten picks of First Shanghai this year was 18.44%, which outpaced the HSI (4.05%) and HSCEI (9.66%) by 14.39% and 8.78% over the same period. Meanwhile, the average increase in the top picks of First Shanghai was 10% in 2Q24, vs the HSI‘s 5.81% and the HSCEI’s 7.2% over the same period.

　　Related NewsBOCI Lists Top Picks for HK Stocks in 2H24 (Table)

　　In view of the current economic environment and market conditions, First Shanghai selected the following five stocks as key recommendations for 2H24, including CHINA TELECOM (00728.HK) +0.080 (+1.643%) Short selling $25.65M; Ratio 11.801% , PETROCHINA (00857.HK) -0.060 (-0.743%) Short selling $201.99M; Ratio 26.095% , ZHAOJIN MINING (01818.HK) -0.340 (-2.222%) Short selling $22.76M; Ratio 2.577% , HUA HONG SEMI (01347.HK) -0.400 (-1.747%) Short selling $19.96M; Ratio 6.445% and SINOPHARM (01099.HK) +0.060 (+0.303%) Short selling $7.65M; Ratio 9.263% .

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-12 16:25.)

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