The news that Morgan Stanley has switched to bullish on China stocks for the first time in 2 years is all over the place today.
- Multiple positive developments alongside a clear path set toward reopening warrant an upgrade
- We are at the beginning of a multi-quarter recovery in earnings revisions and valuations
MS have upgraded their MSCI China to overweight (previously qual weighted)
- Say RoE is likely to gain to 11.1% by the end of 2023
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ps. The MSCI China Indexes consist of a range of indexes for the Chinese markets, intended for both domestic and international investors.
A good way to wrap up the Year of the Tiger!
