HSBC Private Bank CIO: China Stocks Likely to Rise Choppily in H2 2026

HSBC Private Bank and Wealth Management’s China chief investment officer said A-shares have seen a “stock-by-stock game” and sharp structural divergence since June, but AI-related momentum has helped the STAR 50 and ChiNext indices post solid gains, according to Jiemian News. The CIO said China’s K-shaped recovery has widened performance differences between A-share and Hong Kong tech indices. He noted that large mainland internet platform companies listed in Hong Kong are more dependent on consumer demand, and weaker May consumption data has raised concerns about their traditional businesses such as e-commerce and customer management revenue. He expects China’s stock market in the second half of 2026 to likely remain in a “choppy upward” trend with continued divergence. He recommended a barbell strategy focused on growth and innovation themes including AI, high-end manufacturing, semiconductor equipment and materials, computing power supply chains, and some resource products with price increases, while raising allocations to high-dividend, low-valuation assets with stable cash flows to hedge overseas rate volatility.