Morgan Stanley Upgrades China Stocks on Reopening Bullishness
- Raised to overweight, had been equal-weight since January 2021
- Recovery ‘set to be bumpy’ amid earnings pressure, Wang says
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Morgan Stanley is turning bullish again on Chinese stocks after almost two years, joining a growing chorus of Wall Street banks that are sanguine on the nation’s outlook as it moves to relax Covid-19 measures.
“Multiple positive developments alongside a clear path set toward reopening warrant an upgrade,” strategists including Laura Wang wrote in a note dated Sunday. “We are at the beginning of a multi-quarter recovery in earnings revisions and valuations.”