Asian markets will look “very different” in 2025 in light of China’s new policy measures, the slowing Indian economy and Southeast Asian countries’ investments into new infrastructure, according to HSBC. A raft of stocks can still “benefit from these changes in Asia as they are best positioned to capture growth from these opportunities and that our analysts like from a bottom-up perspective,” the investment bank’s analysts wrote in a Nov. 19 research note. The stocks are “outside of consensus ideas, which are generally well owned, and our aim is to highlight quality stocks that are relatively underappreciated,” they added. Here are three of HSBC’s top ideas. Meituan HSBC is bullish on Meituan and has a target price of 220 Hong Kong dollars ($28.30) on the stock, giving it 25.8% upside potential. The investment bank categorizes the Chinese e-commerce giant as a “best-in-class large cap” idea which it says stands out for its “high-quality growth, improving profitability and limited competition.” “Despite the macro challenges, Meituan’s growth profile remains resilient,” said Charlene Liu, HSBC Global Research’s head of internet and gaming research for Asia-Pacific. “Its earnings quality is one of the best in the sector,” she said, adding that Meituan’s top line is expected to grow 20% in 2024 and 17% in 2025. Referencing data from Morningstar, Liu flagged that Meituan is “relatively under-owned compared to other Internet peers,” with only around 45% of global emerging market funds owning the stock. By contrast, fellow tech giant Tencent is “owned by two out of every three funds,” she added. Meituan’s shares are listed on the Hong Kong Exchange and trade as an American Depositary Receipt (ADR) in the U.S. under the ticker MPNGY . Krishna Institute Of Medical Sciences In the small-cap space, the bank is betting on the Krishna Institute Of Medical Sciences , or KIMS, as more Indians invest in quality health care. Calling it a “best-in-class small-cap” idea, HSBC Global Research’s India health-care analyst Damayanti Kerai believes it is “well positioned to sustain healthy growth.” That follows KIMS’ moves into newer markets with strong demand, and areas of specialization such as high-end procedures like transplants and oncology. It is also looking to expand bed capacity by 60% over financial years 2025 to 2027, Kerai said. The moves “should help it sustain healthy margins by improving its revenue mix,” the analyst added. Shares in KIMS are listed on India’s National and Bombay Stock Exchanges. HSBC has a target price of 670 Indian rupees ($7.90) on the stock, implying about 19% upside potential. Kia Also on HSBC’s list is Korean automaker Kia, which it considers the “best value play for 2025.” Kia’s shares have been on an uptrend, gaining around 8% in the last five days. “The recent share price performance factors in an escalation of trade tensions that will likely impact sector growth. However, it remains unclear what type of policies will be implemented by the newly elected administration in the U.S.,” noted Will Cho, HSBC Global Research’s Korea electric vehicle battery, autos and technology analyst. He believes the “market has underplayed the competitiveness of Korean companies in the EV and hybrid electric vehicle (HEV) space.” Looking ahead, Cho says Kia’s “strong margin profile can support its electrification initiative to produce more competitive and affordable EV models, especially in the EU where the regulatory environment should be more favorable from 2025e.” “This should help offset overall volume pressure, the main reason for Kia’s valuation discount, as Kia’s success in the U.S. is likely to extend to the EU through market share gains in mass market EVs,” he added. Shares in Kia are listed on the Korea Exchange and trade as an ADR in the U.S. under the ticker KIMTF . HSBC has a target price of 160,000 Korean Won ($114.80) on the stock, implying nearly 63.1% upside potential. — CNBC’s Michael Bloom contributed to this report.