Citigroup Cuts Hang Seng Index Year-End Target to 29,600 from 30,000 Amid Tech Stock Weakness in H1

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According to Citigroup China equity strategist Liu Xianda, the brokerage cut its Hang Seng Index year-end target to 29,600 from 30,000 during the first half of 2026, citing structural challenges in the Hong Kong stock market. The weakness stems from Hong Kong's limited exposure to genuine semiconductor and AI hardware stocks, with true tech stocks representing only 4% of the market, compared to 15% in mainland China and higher percentages in the U.S. and Taiwan. Platform stocks, which make up 32% of the Hang Seng Index, dominate Hong Kong's tech classification but are exposed to consumer-related pressures, limiting the index's appeal to global tech-focused investors.
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