UOB Kay Hian Research is recommending “add” on China Construction Bank (CCB) with a target price of RMB8.50 ($1.76), China Gas with a target price of HK$37.60 ($6.41), Kingboard Laminates with a target price of HK$27.00, JD.com with a target price of US$100.00 ($132.27), Link REIT with a target price of HK$85.10 and Sino Biopharm with a target price of HK$13.00.
Chinese equity markets made further gains in May, says the Greater China research team at UOB Kay Hian Research, but outperforming sectors were mostly defensive, such as consumer staples and healthcare.
Although the technology, media and telecoms (TMT) sector regained some momentum in late May, the team prefers a defensive bias in June as the yield gap has narrowed, but macro uncertainties remain.
