Morgan Stanley Drops Bearish China Stocks Call, Lifts Target 22%
- Firm raises targets for MSCI China and indexes in Hong Kong
- Sees structural regime shift underway in Chinese equity market
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Morgan Stanley strategists ended their bearish view on Chinese stocks, following Wall Street peers in predicting a more sustainable rally spurred by the country’s advances in artificial intelligence.
Laura Wang and her colleagues now recommend being equalweight on the asset class, and expect the MSCI China Index to reach 77 by the end of 2025. That’s 22% higher than its earlier target, and indicates another 4% rise from Wednesday’s close. The gauge entered a bull market earlier this month.