Due to the geopolitical unrest, the weak currency outlook, and the delayed earnings recovery, Morgan Stanley has lowered its target for key Chinese stock indices. It decreased the Hang Seng China Enterprises Index target to 7,320 from 8,250 and the MSCI China Index target to 70 from 80, implying gains of roughly 15% from the most recent close for each index through June 2024. According to Bloomberg, despite reducing exposure, the global bank has kept its overweight recommendation.
“We acknowledge the significant hurdles to be overcome first and that the window for investors to reassess the market is narrowing,” Morgan Stanley strategists led by Laura Wang wrote in a Sunday note, according to Bloomberg. Meanwhile, the market may resume its outperformance from the second half on policy easing.
Also Read: Economists Welcome India’s Fourth-Quarter GDP Growth But Warn Of Difficult Conditions
Also Read: NHPC Inks Initial Pact With Nepalese Utility To Develop 480 MW Phukot Karnali Hydro Project
The most recent note states that the strategists favour mainland shares over those listed offshore because the former can gain from re-rating state-owned enterprises and enjoy better liquidity. Their most recent target for the CSI 300 Index is higher than the previous one, which was 4,500 for December 2023, at 4,620 for June 2024.
Recent economic weakness and geopolitical tensions turned important Chinese gauges into underperformers on a global scale, causing the MSCI China and the HSCEI gauge to enter a bear market.
Also Read: India’s Economic Indicators Telling A Story—Of Growth, Recovery, Robustness
Also Read: Minister Pralhad Joshi: State-Owned Coal Firms Taking Various Measures To Make Mining Sustainable
Doval and Ribadu held detailed talks on challenges linked to terrorism and radicalization, including those…
Analysts predict that the stock could drop closer to the Rs 70 mark. Ola Electric…
This election is one of the most divisive in US history. Harris and Trump have…
Opposition members alleged that Pal calls JPC meetings without consulting them and restricts their opportunity…
The Delhi Police opposed Saifi’s bail, citing evidence from WhatsApp messages exchanged among the accused.…
To protect millions of devotees at Maha Kumbh, the UP govt is implementing advanced security…