HSBC recommends overweight positions in Chinese equities

HSBC Global Private Banking believes recent changes in China's policies may boost Chinese stocks. The National People’s Congress has endorsed these shifts, focusing on technology innovation and support for the private sector. China has set a 5% GDP growth target for 2025, showing its commitment to growth. The government is prioritizing increased domestic consumption this year, which is seen as crucial for the economy. Additionally, Beijing is investing significantly in artificial intelligence through its “AI Plus” strategy. This aims to enhance China’s position as a global technology leader. Experts at HSBC think these developments justify investing more in Chinese equities and investment-grade bonds. They emphasize opportunities in internet and tech sectors, noting improved earnings expectations and attractive valuations.