“The upcoming 2023 annual report/4Q 2023 result season will be another miss,” Morgan Stanley strategists Laura Wang and Catherine Chen in Hong Kong wrote this week in a research note. “Major downward earnings estimates revisions are likely, which will cap valuation re-rating opportunities.”
Fears are growing that China’s listed companies will announce disappointing earnings in coming weeks, adding to the downdraft facing the world’s worst-performing major equity market.
Earnings at listed firms are set to miss forecasts for a 10th straight quarter and that will push down valuations, according to Morgan Stanley. There are a plethora of negatives that will weigh particularly heavily on the profits of banks and consumer-focused companies, Forsyth Barr Asia Ltd. says.
