China H-Share Plunge Undercuts Analyst Argument for 34% Gain
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Analyst predictions that Chinese stocks in Hong Kong will reverse the world’s biggest rout and climb 34 percent over the next 12 months are too optimistic, according to RS Investment Management Co.
The gap between the consensus target price for the Hang Seng China Enterprises Index and the current level reached its widest since 2011, as the attached chart shows. The rally prediction is the largest among major global markets, with only Greece -- where stocks can’t currently be traded -- Egypt and Peru having similar projected gains.