HSBC has identified eight emerging equity markets it favours heading into 2027, citing opportunities in artificial intelligence, economic reforms and resilience to global shocks. In its October 6 emerging markets strategy report, the bank maintained overweight ratings on Taiwan, mainland China, Brazil, South Africa, Türkiye and Hungary, while upgrading the United Arab Emirates and Colombia to overweight. HSBC said emerging markets face four major challenges: elevated oil prices, El Niño-related food inflation, rising US bond yields and rapid developments in artificial intelligence, and it expects investors to increasingly favour economies with greater independence in resources, technology, financing and access to international markets, describing this as an "autonomy premium." Taiwan remains a preferred AI investment destination, supported by demand for advanced semiconductors, packaging, cooling systems and other infrastructure, with nearly 60% of listed-company revenues linked to AI-related activities, while mainland China offers opportunities in AI hardware, innovation and exporters on relatively attractive valuations and improving earnings momentum. HSBC simultaneously downgraded Mexico, Chile and Egypt to neutral, citing weaker catalysts and increased economic risks, and maintained underweight positions on India, Thailand, Indonesia and the Philippines.
HSBC Holdings PLCHSBC is the author of the EM strategy report favoring eight markets; the news is its own research call, not a company-specific financial event.
