Citigroup released an Asian stock strategy report, saying that despite the volatility of the macro environment, Asian stock markets still outperformed their global peers. The US tariff issue made the short-term outlook unclear, but Citigroup's stock strategists still held a constructive view on the medium-term outlook. The bank expects the MSCI Asia (excluding Japan) Index to have a return of about 7% by mid-2026, which is equivalent to a forecast price-to-earnings ratio of 14 times. The bank is optimistic about the Chinese and Korean markets in Asian stocks, whose corporate earnings per share revision trends are better, valuations are reasonable, and benefit from structural themes (artificial intelligence, corporate governance reforms). The bank's target for the Hang Seng Index is 25,000 points at the end of this year and 26,000 points by the middle of next year. The target for the CSI 300 Index is 4,200 points at the end of this year and 4,350 points by the middle of next year. The target for the MSCI China Index is 79 points at the end of this year and 82 points by the middle of next year. Citi said that in the MSCI China industry weight model portfolio, the bank upgraded the consumer sector from neutral to overweight, preferring domestic related stocks and preparing for potential government stimulus; it downgraded the transportation sector from overweight to neutral because global freight volume has downside risks against the backdrop of increased US trade tariffs. The bank gave an overweight rating to China's Internet, technology and consumer sectors.