Citigroup: Raises year-end target for Hang Seng Index to 25,000 points. Priority buy list includes Tencent, BYD, and Anta, etc.

Citibank released a report stating that the expected mild government stimulus policies to boost the domestic economy are likely to have a positive impact on the consumer, internet, resources, and technology industries. The bank believes that both the mainland and Hong Kong stock markets do not appear to be overvalued and are slightly below historical averages, therefore still holding a constructive view. The bank has upgraded the consumer industry to "buy" and prefers domestic stocks, hoping to benefit from government stimulus measures; downgraded the transportation industry to "neutral" due to rising US trade tariffs. The bank also favors large internet stocks and technology stocks benefiting from government policy support. The bank has raised its year-end target for the Hang Seng Index from 24,500 points to 25,000 points, with a mid-year target of 26,000 points next year. The year-end target for the MSCI China Index has been raised from 78 points to 79 points, with a mid-year target of 82 points next year. The bank's list of top H-share buys includes Tencent, Huaneng Power International, BYD, AIA, and ANTA Sports.