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| HSI1 | 24,231.30 | 0.00 | -- |
| HSCEI1 | 8,914.03 | 0.00 | -- |
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2025-03-07 11:43:02 HSBC Global Research released a report, drawing lessons from the rise of the U.S. AI sector, noting that U.S. stocks are more driven by fundamentals compared to Chinese equities. The broker observed that China’s AI value chain currently trades at a large valuation discount relative to the U.S. market. However, since 2020, Chinese AI application companies have outstripped their U.S. peers in revenue growth. Market consensus suggested that the ROE gap between the two was expected to narrow substantially over the next two years, indicating that downstream application stocks could be the next key focus for re-rating in the AI industry. Given the valuation discount and improving fundamentals, the broker reiterated a constructive mid-to-long-term outlook on Chinese AI stocks. It believed the trend of investor focus shifting toward mid- and downstream stocks will persist. Among these, downstream AI performers such as BIDU-SW (09888.HK), LENOVO GROUP (00992.HK), and BABA-W (09988.HK) may catch up, while the broker also favored XIAOMI-W (01810.HK) as a beneficiary of AI technology advancements, assigning it a Buy rating with a target price of HKD65.6. ~ AAStocks Financial News Web Site: www.aastocks.com | |