HSBC upgraded Indian equities to neutral from underweight and maintained overweight ratings on mainland China, Hong Kong and Singapore in its latest Asia Equity Insights Quarterly report. The bank downgraded Malaysia and the Philippines to underweight, citing weak macroeconomic conditions and limited catalysts. HSBC said Asia's AI-driven equity rally is entering a more challenging phase as investors question whether surging AI infrastructure investment could lead to overcapacity. For China, the bank sees opportunities in banks, property developers, internet companies, pharmaceuticals and energy storage, expecting earnings growth in 2026 to outpace last year. HSBC also updated its end-2026 index targets, forecasting the Sensex at 84,000, Hang Seng at 27,000, KOSPI at 8,000, Taiwan's TAIEX at 49,000, and Singapore's STI at 6,100, implying an average upside of roughly 9% across Asian markets.
HSBC Holdings PLCHSBC's own upgrade of India and overweight on China/Singapore reflects positive analyst sentiment, which can support its stock as a major Asia-focused bank.