Hong Kong equity strategy:Born to adapt and survive

Hong Kong is one of the few places in the world today with sizeable fiscaland residential savings, plus a base of family-led businesses that hasgone through multiple business/credit/political cycles and survived. Thecity is poised to benefit as China brings together its onshore and offshorecapital markets via the Connect Programmes, and as mainlandenterprises and individuals utilize HK in making outbound investments.

    We forecast 2016-end targets of 13,500 on the MSCI HK and 23,800 onthe HSI, with likely peaks around the launch of Shenzhen-HK Connect.