According to a report from BofA Securities, the stock prices of Chinese software companies covered by the broker averaged an increase of 16% in 2025, underperforming the 23% increase in the MSCI China Index.Looking ahead to 2026, BofA Securities holds a cautiously optimistic view on software demand prospects, given that accelerated AI monetization and a trend of software import substitutions will coexist with weak demand across several vertical industries.Related News UBS Lowers MEITU (01357.HK) TP to HKD9.4, Still Recommends 'Buy'; New Product Incubation Takes TimeBofA Securities is selectively positive on companies in the enterprise resource planning (ERP), photo editing software, and office software sectors, as they have higher growth visibility driven by the SaaS model and AI. In contrast, it remains cautious on cybersecurity and real estate software due to soft demand.The broker's top picks are KINGDEE INT'L (00268.HK) -0.120 (-1.407%) Short selling $83.42M; Ratio 80.917% , MEITU (01357.HK) -0.090 (-2.041%) Short selling $48.49M; Ratio 120.924% , and KINGSOFT OFFICE (688111.SH) -3.090 (-1.329%) , all rated as Buy. Their target prices are detailed in a separate table.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-02 16:25.) (A Shares quote is delayed for at least 15 mins.)
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