Reference News Network on December 17** According to Singapore's "Lianhe Zaobao**" on December 17, citing Bloomberg and other sources, looking forward to 2024, most Wall Street banks are still optimistic about China**. As China ramps up its stimulus to the property market and injects capital into more sectors of the economy, there is renewed hope that things will be better in 2024. At the same time, the report pointed out that the market's expectations this year are lower than last year.
According to the report, at the end of 2022, the US investment banks Goldman Sachs, JPMorgan Chase and Morgan Stanley **, as Beijing adjusts epidemic prevention measures, the MSCI index will rise by at least 10% annually. This is an index compiled by Morgan Stanley that tracks the performance of the China concept**.
However, China's current performance has not met expectations, the report said. Wall Street's erroneous optimism may be due to underestimating factors such as weak consumption, housing problems, and geopolitical tensions, as well as overestimating the willingness of authorities to increase fiscal spending. Subsequently, some bullish institutions began to adjust.
The report pointed out that while many banks have lowered their forecasts and expected the MSCI China Index to show only single-digit gains, most Wall Street banks remain optimistic about China**.
The views of these institutions look very similar to 2022, including further policy support, improved earnings momentum, and relatively low valuations.
MSCI's China Index recorded its first time in a while amid a global surging in November, with analysts at JPMorgan Chase & Co. saying that "mitigation" is expected to continue until early 2024, supported by easing.
*: Refer to the news network.