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Wall Street’s Chorus of Buy China Calls Is Getting Louder

  • Morgan Stanley, Bank of America shift away from bearish views
  • Offshore Chinese stocks lead rally driven by policy shifts
Bloomberg business news
BofA's Kapur On China Markets

A bullish consensus for Chinese shares is emerging on Wall Street, with new-found optimism around President Xi Jinping’s policy pivots and November’s epic stock rebound prompting some major banks to move away from their long-held bearish views.

Morgan Stanley, notable for its cautious view, lifted its targets for the country’s stock gauges last week, expecting the MSCI China Index to rally 14% by the end of next year. Bank of America Corp. has turned tactically positive on China, where some key equity gauges lost more than a third of their value in the year through October, making them the world’s worst performers.