In a report released on Sunday, November 20th, the team of Citi strategists Robert Buckland believed that:
The current series of domestic policies in China should help stabilize the current decline in earnings per share of Chinese stocks and support investor sentiment. Even if other major economies are slowing sharply, China may rely on internal drivers to achieve an attractive recovery. In recent weeks, Hong Kong's Hang Seng Index has entered a bull market, and the Shanghai Composite Index has also rebounded continuously after testing long-term technical support levels over the past 17 years.
For other Asian economies, Citigroup downgraded South Korea's rating to underweight, citing contracting earnings in the country. Remain neutral towards India; My holdings in Malaysia have been upgraded to "overweight"; Downgrade Indonesia to neutral.
Citigroup isn't the only company bullish on the Chinese market recently.
Always cautiousMorgan StanleyLast week, Morgan Stanley raised its price target for Chinese stocks, predicting that the MSCI China Index would rise 14% by the end of next year. As early as mid-October, during the stock market correction, Morgan Stanley stated that a good time to buy Chinese stocks had arrived.
Earlier this month,Goldman SachsWe reaffirm our confidence in the Chinese stock market. In a report, Goldman Sachs maintained its overweight rating on the MSCI China Index, expecting the MSCI China Index and the CSI 300 Index to return as much as 16% in the next 12 months, and as high as 19% and 21% when exchange rate factors are taken into account. Goldman Sachs also upgraded Hong Kong stocks from underweight to even weight.
In addition, Hillhouse Capital remains optimistic about Chinese assets, with HHLR Advisors, its fund management firm specializing in secondary investments, reporting a third-quarter outlook.Pinduoduo、Legendary CreaturesNine Chinese concept stocks, including those listed above, underwent increased holdings, new purchases, and other operations. We remain optimistic about new energy and have increased our holdings in Daquan New Energy.Jinko Solar。
Allianz Investment All China EquityFundManager Anthony Wong said earlier that the A-share market is best suited to seize (outperform) opportunities because it has a large number of new economy companies and is relatively unaffected by external fluctuations.
The market's performance did not disappoint Wall Street banks. This month, the MSCI China Index surged nearly 24%, poised for its best monthly performance since 1999. Hong KongHang Seng China EnterprisesThe index and the Nasdaq Golden Dragon China Index are also in technical bull market territory.