Citigroup: Raises Hang Seng Index year-end target to 30,000 points

Citigroup released a report, expecting that the earnings per share of the Hang Seng Index (HSI) will increase by 9.1% this year, surpassing last year's growth of 2.2%. They have raised their year-end target for the HSI from 28,800 points to 30,000 points. It is forecasted that the price-earnings ratio for this year will be 11.9 times and the price-to-book ratio will be 1.3 times, which is not considered expensive compared to global valuations. Citigroup stated that due to the rise in commodity prices, increased earnings expectations, and the weakening US dollar, they have upgraded their rating of the basic materials sector from "neutral" to "buy".