Investment Insights

CIO Viewpoints

2026 China A-shares: Earnings growth set to accelerate 

Daily Insights

Focus of the Day

  • Fed independence concerns added momentum to gold, reinforcing its upward trajectory

Other Commentaries

  • A Fed subpoena heightened concerns over US asset risk; China A-share turnover hit a record high on Monday; China’s cut in battery export rebates may accelerate industry consolidation

Market Analysis

FX Markets Analysis

Latest Technical Highlights

EUR - Uptrend↗

Support / Resistance

vs HKD 8.9859 / 9.2738

vs USD 1.16 / 1.19

Eurozone retail sales data for November exceeded expectations, indicating a steady recovery in consumer confidence and a potentially optimistic economic outlook. Meanwhile, Eurozone inflation is also in line with the European Central Bank's target, suggesting the end of its interest rate cut cycle. The divergence in monetary policy between the US and Europe will continue to benefit the EUR.

 

Legends

Uptrend ↗  Sideways →  Downtrend ↘

*Pertaining to historical technical trend analysis only and do not reflect any forecasts or any forward looking views

Provided by Hang Seng Investment Services Limited

Stock Markets View

  • Broadening sector participation, supported by rate‑cut expectations and AI‑driven revenue growth, has propelled the market higher, with small‑caps and blue‑chips reaching new peaks. Focus now shifts to the upcoming earnings season
  • European equities have advanced year‑to‑date, led by technology and defense sectors. However, rising geopolitical uncertainty—including US ambitions in Greenland—could weigh on investor sentiment
  • North Asian markets continue to benefit from robust AI‑related demand. In Southeast Asia, a recovery in tourist arrivals is supporting regional economic activity
  • Emerging Latin American currencies have maintained relative strength year-to-date, suggesting potential medium to long-term advantages for regional markets. However, geopolitical developments in Latin America warrant close monitoring
  • CSI 300 has reached a four‑year high, while Hang Seng Index has rebounded above 26,000. A four-month consecutive rise in mainland CPI, coupled with new AI and advanced semiconductor listings, bolstered overall market sentiment
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

Bond Markets View

  • Market attention is focused on the upcoming release of the US December inflation data and the nomination of the next Fed Chair, which may contribute to heightened volatility in US Treasury yields
  • Global corporate bond issuance so far this year has reached a record high for the period. Attractive yields in the high‑grade segment continue to support fund inflows
  • China’s moderate rise in December inflation supports corporate investment appetite and should help maintain stable investment-grade credit spreads
  • The sector continues to perform strongly, with yields and spreads tightening further and active new issuance. Sentiment remains upbeat in the near term, though Fed policy and economic data pose watchpoints
  • China’s “whitelist” project loan extensions may alleviate near‑term pressure, while major developers are progressing with debt restructuring plans. However, property sales and fundamental recovery in the sector remain slow
  • Political tensions in Venezuela have eased somewhat, while market hopes for a potential debt restructuring have also risen. This improved regional sentiment has supported a modest advance in emerging market USD bonds
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

Featured Videos

Financial Breakfast

Heightened US political risks both at home and abroad fueled the rally in gold (Cantonese version) #AI_Mark #Investment #CIO Insights #Commodity Markets #Gold #Financial Breakfast

2026 Market Outlook (Cantonese version)

Belle Liang & Mark Wan

Gold (Cantonese version)

Belle Liang & Cally Cheng

Latest Market Focus

CIO answered the top 4 questions from investors (Chinese Only)

Is there still upward potential for gold prices in 2026? (Chinese Only)

2026 A-share market outlook (Chinese only)

2026 Asian Equity Outlook (Chinese only)

FX & Gold market outlook 2026 (Chinese Only)

2026 US Stock Market Outlook (Chinese only)

HK stock market outlook in 2026 (Chinese only)

Exploring yield opportunities in emerging markets (Chinese only)

US Healthcare Sector in Focus Again (Chinese only)

What to do with bonds under uncertain rate cut (Chinese only)

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