In a report published on Sunday, November 20th, Citi strategist Robert Buckland's team believes:
At present, a 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 drives to achieve 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 rallied back-to-back after testing long-term technical support levels for 17 years.
For other Asian economies, Citi downgraded South Korea to underweight, citing a contraction in South Korea's earnings; Stay neutral on India; Upgraded to overweight for Malaysia; Lowered Indonesia to neutral.
Citigroup is not the only one that has been bullish on the Chinese market recently.
Always cautiousMorgan StanleyLast week, it raised its target price on the Chinese stock market, and it is expected that the MSCI China Index will rise by 14% by the end of next year. Morgan Stanley said as early as mid-October when the stock market pulled back that a good time has 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 the MSCI China Index. It is expected that the MSCI China Index and the CSI 300 Index will return as high as 16% in the next 12 months. If the exchange rate factor is included, 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. HHLR Advisors, a fund management institution specializing in secondary investment,Pinduoduo、Legendary creatureWaiting for 9 Chinese concept stocks to increase their holdings and purchase new positions; Continue to be optimistic about new energy, increase positions in new energy andJinkoSolar。
Allianz Investments All China EquityFundFundManager Anthony Wong said earlier that the A-share market is best suited to seize (outperform) opportunities because the market has a large number of new economy players and is relatively unaffected by external volatility.
The performance of the market did not disappoint Wall Street banks. This month, the MSCI China Index surged nearly 24%, putting it on track for its best monthly performance since 1999. Hong KongHang Seng China CorporationIndex and the Nasdaq Golden Dragon China Index are also in technical bull territory.