On September 7, China Renaissancereleased a research report on their Model Portfolio adjustments.
China Renaissance added China Mengniu Dairy, BeiGene and Futu, while they removed CMB-A, Midea, East Money, Anta, WuXi AppTec, Wingtech, Full Truck Alliance, Qi An Xin, Anke Biotech, RLX Tech and Weimob.
China Renaissance's analyst Cindy Wang considers FUTU:
• Benefiting from self-clearing of US stocks and interest rate hikes.
• Client assets and MFSL balance remain solid despite weak market performance.
• It is making market share gains in Hong Kong amid industry consolidation.
• Target price is based on 22.9x 2022E P/E.
China Renaissance remained medium-term bullish on Chinese equities; COVID resurgence and geopolitical uncertainties could lead to continued near-term volatility.