Citi(US:C) Xin Lang Cai Jing·2026-01-07 05:50Group 1 - The core viewpoint is that the Hang Seng Index (HSI) is expected to have moderate upward potential, with a target of 27,500 points by June and 28,800 points by the end of the year [1] - The sectors that are favored for investment include technology, internet, insurance, healthcare, and consumer sectors, which are anticipated to benefit from national policies and their own profit growth [1] - Corporate earnings have not fully recovered, leading to limited growth in the HSI, with real estate sales expected to see only a slight rebound this year [1] Group 2 - The Chinese yuan is expected to perform well this year, with projections of USD/CNY reaching 6.9 in March and June, and appreciating to 6.8 by September and December [1] - The People's Bank of China is anticipated to have limited room for interest rate cuts and reserve requirement ratio reductions, with an expected total interest rate cut of 20 basis points for the year [1] - The GDP growth for China is estimated at 4.7%, which, along with increased investor confidence in Chinese assets, is expected to support a steady appreciation of the yuan [1]