Morgan Stanley broadly raises China stock index targets

Odaily Planet Daily News Morgan Stanley released its China stock market outlook for the second half of 2026, titled “Forging New Horizons.” Morgan Stanley's Chief China Equity Strategist Wang Ying and her team expect a modest rise in the Chinese market by the second quarter of 2027, driven primarily 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 selection strategy rather than passive index investing. Morgan Stanley's new target prices 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 CSI 300 Index at 5,400 points, implying upside potential of 8%, 12%, 11%, and 11%, respectively. However, short-term volatility may still occur, and market direction is expected to become clearer during this summer or thereafter. (Shanghai Securities News)