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Hope Blooms for China Stocks as Analysts Stop Cutting Estimates

  • Earnings forecasts stabilize for MSCI China Index in May
  • Easing virus curbs, policy stimulus have also lifted sentiment
People stand along a bridge near the Bund in Shanghai.

People stand along a bridge near the Bund in Shanghai.

Source: Bloomberg

A stabilization in earnings expectations is adding to optimism that the worst may be over for China’s beleaguered stocks.

Analysts have stopped cutting forward estimates for MSCI China members, after slashing them by 10% since early March, according to data compiled by Bloomberg. Goldman Sachs Group Inc. and China International Capital Corp. expect profits to rise for the benchmark in the second half of this year.