Goldman Hikes China Stock Targets as Morgan Stanley Cautions

A liquidity-driven rally in Chinese stocks is sparking debate among Wall Street analysts over its sustainability, as macroeconomic indicators remain weak.

Goldman Sachs Group Inc. strategists raised their 12-month target for the CSI 300 Index to 4,900 from 4,500 on Thursday, citing supportive valuation metrics, trend-level profit growth in the high single digits, and favorable market positioning. In contrast, those at Morgan Stanley are more cautious, flagging emerging signs of market overheating.