Goldman Sachs strategists expressed similar views. “China is back” on investors’ radar with room for its rally to expand further, Kinger Lau and Timothy Moe wrote in a note dated Wednesday. They remained bullish on the market after meeting with investors in Asia, the US and Europe in the past month.
Morgan Stanley strategists raised their outlook for Chinese stocks for second time in a little more than a month, citing upside for valuations amid an improving outlook for earnings.
“MSCI China is finally on its way – looking set for the first earnings beat after 13 consecutive quarterly misses, while earnings estimate reductions are approaching inflection,” strategists including Laura Wang and Jonathan Garner wrote in a note dated Tuesday. “China deserves a valuation on par with MSCI EM, cutting its longstanding discount,” they added.
