Hang Seng Index poised for recovery in 2025

It is seen to rebound to 23,200 points.

Despite recent declines and heightened market activity, the Hang Seng Index (HSI) is expected to recover and show strong growth potential in 2025.

KGI forecasted the HSI to rebound to 23,200 points in 2025 even with the peak daily trading turnover of over $600b.

Meanwhile, market forecasts for 2025 predict steady growth in earnings per share (EPS), with a modest YoY increase.

KGI stated that this growth would lead to a price-to-earnings (P/E) ratio of 10.50x at the 23,200-point level, which is slightly above the 10-year average of 10.26x.

“Should the index close at 19,700 points by year-end, this would indicate a potential upside of approximately 17.8%,” it added.