HSI1 26,384.28 -188.18 217.61B
HSCEI1 9,328.40 -69.56 79.35B
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M Stanley Sets End-2026 Base/ Bull Case Targets for HSI at 27,500/ 34,700, Recommends Buying High-Quality Tech Leaders
2025-11-17 11:27:33
According to Morgan Stanley's China market strategy report for 2026, both the MSCI China Index and the HSI have snowballed by over 30% YTD, making China one of the best-performing major markets in 2025 and reflecting structural improvements.

In the broker's estimate, 2026 will be a year of stability following high returns in 2025. Accompanied by modest EPS growth and stable valuations at higher ranges, index growth potential is likely to be moderate, as China regains its footing in the global tech race and trade tensions ease.

Morgan Stanley set its latest base and bull case targets for the HSI by the end of December 2026 at 27,500 and 34,700 respectively. In terms of industry preference, the broker will maintain a barbell strategy: increasing holdings in high-quality internet and tech leaders while underweighting sectors dragged by macro headwinds, such as real estate, consumer staples, and energy. It will also keep selective stock picking for dividend stocks to achieve stable cash returns.
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