China Stock Bulls Hit Reset Button After $1.5 Trillion Rout
- Index targets being cut; recovery to January peak looks tough
- Some sectors including SOEs and AI may continue to outperform
This article is for subscribers only.
After being wrong-footed by a $1.5 trillion rout in Chinese stocks, some of Wall Street’s biggest banks are coming around to a less optimistic consensus.
Strategists at Goldman Sachs Group Inc., Nomura Holdings Inc. and Morgan Stanley have all slashed their MSCI China Index targets over varying periods by at least 11%. Their latest projections suggest that while the gauge may rebound from current levels, it will struggle to reclaim the high seen in January, when the reopening frenzy was at its peak.