GEMs Best Stock Ideas

Research evidence excerpt

GEMs Best Stock Ideas

15 July 2026

GEMs Best Stock Ideas EquityEmergingStrategyMarkets

July 2026

◆ We highlight 22 stock ideas across emerging markets Alastair Pinder, CFA

Head EM and Global Equity Strategist

◆ These are our analysts’ best ideas based on their bottom-up HSBC Securities (USA) Inc.

alastair.pinder@us.hsbc.com

analysis… +1 212 525 5972

Pankaj Agarwala*, CFA

◆ …and are also consistent with our top-down strategy EM and Global Equity Strategist

HSBC Securities and Capital Markets (India) Private

Limited

It’s been a strong but narrow rally for EM equities so far this year: EM is up 18% vs pankajagarwala@hsbc.co.in

9% for the S&P 500. However, stripping out EM’s “tech trident” – TSMC, Samsung +91 0 80 30013716

Electronics and SK Hynix – returns are closer to 3%. Only 20% of stocks have Herald van der Linde*, CFA

Head of Equity Strategy, Asia Pacific

outperformed the benchmark over the past year, the lowest proportion since our data The Hongkong and Shanghai Banking Corporation Limited

began in 2000. We expect to see some modest broadening in performance in H2, heraldvanderlinde@hsbc.com.hk

+852 2996 6575

driven by two factors: 1) Positioning: EM’s tech trident now accounts for c30% of

Raj Sinha*

EM indices, and at that weight, GEM funds have been forced into a record underweight. Co-Head of Global Equity Research

Volatility has also become difficult for many funds to stomach, particularly in Korea’s HSBC Bank Middle East Limited, Dubai branch

raj.sinha@hsbc.com

memory names, where moves are being exacerbated by the growth of 2x levered +971 4 423 6932

ETFs. Given these dynamics, we expect investors to increasingly look for alternatives Nicole Inui*, CFA

within the EM complex to rotate into.