Morgan Stanley raises Chinese stock index target across the board

Odaily Planet Daily reported that Morgan Stanley released its outlook for the Chinese stock market in the second half of 2026, titled "Forging New Horizons." Laura Wang, Morgan Stanley’s Chief China Equity Strategist, and her team expect a moderate rally in the Chinese market by the second quarter of 2027, driven mainly by improved corporate earnings, China's growing dominance in the global upstream supply chain, and a stronger Renminbi. Morgan Stanley favors A-shares over offshore markets and recommends a thematic stock-picking strategy rather than passive index investing. The new target prices set by Morgan Stanley for the second quarter of 2027 are: Hang Seng Index at 28,400 points, MSCI China Index at 91 points, Hang Seng China Enterprises Index at 9,900 points, and the CSI 300 Index at 5,400 points, implying upside potentials of 8%, 12%, 11%, and 11%, respectively. However, short-term volatility may still occur, and market trends are expected to become clearer this summer or later. (Shanghai Securities News)