China’s Profit Outlook to Improve Further, Morgan Stanley Says

Chinese companies’ second‑quarter profit outlook is set to improve after encouraging first‑quarter results, with rising exports and early signs of reflation boosting revenues, according to Morgan Stanley.

In the first quarter, companies in the MSCI China A Onshore Index that missed consensus estimates outnumbered those beating them by 12.5%, improving from the 23.2% gap seen in the previous quarter, the firm’s strategists led by Laura Wang wrote in a note on Tuesday.