STOCKS | Bank of America Securities Upgrades China Merchants Securities to 'Buy'

Bank of America Securities has upgraded China Merchants Securities (06099.HK) from 'Underperform' to 'Buy', citing increased trading activity in the A-share market as a driver for potential earnings growth. According to Jin10, the report also highlights potential investment gains from IPOs in the second to fourth quarters. The target price for China Merchants Securities' Hong Kong shares has been raised from HKD 15.3 to HKD 16.6. This adjustment reflects a 16% increase in the 2026 earnings per share forecast to RMB 1.68 and an expected rise in the mid-term return on equity from 8% to 8.8%. Recent management changes and news regarding the Changxin Storage IPO are seen as short-term catalysts.