In a note published on Sunday, Nov. 20, Citi strategist Robert Buckland's team argued:
A series of current domestic policies in China should help stabilize the current decline in Chinese equity earnings per share and support investor sentiment. Even if other major economies are slowing sharply, China could rely on internal drivers for an attractive recovery. In recent weeks, the Hang Seng Index in Hong Kong, China, has entered a bull market, and the Shanghai Composite Index has also rebounded consecutively after testing 17 years of long-term technical support.
For other Asian economies, Citi downgraded South Korea to underweight, citing a contraction in earnings; Neutral towards India; Upgraded to Overweight on Malaysia; Downgrade Indonesia to neutral.
Citi is not the only one that has been bullish on the Chinese market recently.
Always cautiousMorgan StanleyAfter raising its price target on Chinese stocks last week, expecting the MSCI China Index to rise 14% by the end of next year, Morgan Stanley said back in mid-October, amid the stock market correction, that a good time had come to buy Chinese stocks.
Earlier this month,Goldman SachsReaffirm confidence in China's stock market. In a report, Goldman Sachs maintained its overweight rating on MSCI China Index. It is expected that MSCI China Index and CSI 300 Index will return as much as 16% in the next 12 months, and if exchange rate factors are taken into account, their returns will be as high as 19% and 21%. Goldman Sachs also upgraded Hong Kong shares from underweight to equal weight.
In addition, Hillhouse Capital continues to be optimistic about Chinese assets, and its fund management institution HHLR Advisors, which specializes in secondary investment, in the third quarterPinduoduo、Legendary creaturesNine Chinese stocks have carried out additional positions such as increasing holdings and new purchases; Continue to be optimistic about new energy, and add positions to Daqo New Energy andJinkoSolar。
Allianz Investments All China EquityFund FundManager Anthony Wong said earlier that the A-share market is best placed to seize (outperform) opportunities because it has a large number of new economy businesses and is relatively immune to external volatility.
The performance of the market did not disappoint the big Wall Street banks. This month, the MSCI China Index jumped nearly 24%, on track for its best monthly performance since 1999. Hong KongHang Seng China EnterprisesIndex and the Nasdaq Golden Dragon China Index are also in technical bull market territory.