Morgan Stanley Sees Modest Gains for Chinese Stocks Next Year
Chinese equities may enter a phase of consolidation next year amid an uncertain outlook for corporate earnings and high valuations, according to Morgan Stanley.
The key focus for 2026 will be sustaining market momentum while navigating multiple domestic and external factors, strategists including Laura Wang wrote in a note dated Nov. 16. Challenges include the quality and sustainability of corporate earnings, lingering deflationary pressure through 2026 and global macroeconomic uncertainty, they said.