US INVESTMENT bank morgan Stanley has increased its China growth, stock market and yuan forecasts again, becoming the latest Wall Street heavyweight to do so as the country rapidly dismantles two years of tight Covid restrictions, reports Reuters.
The bank's moves included raising its Chinese economic growth forecast 0.3 per cent to 5.7 per cent, lifting its yuan target to 6.65 to the dollar and predicting another 16 per cent jump in MSCI's fast-rebounding Chinese equity index.
'We believe the market is under-appreciating the far-reaching ramifications of reopening, and the possibility that a robust cyclical recovery can occur despite lingering structural headwinds,' said Morgan Stanley's analysts in a note.
For the stock market, which is already up 45 per cent up since late October, they likened the current situation to that in late 2008 and early 2009 after the global financial crisis when many international investors had sold down their positions and were left underexposed to Chinese markets.
SeaNews Turkey
The bank's moves included raising its Chinese economic growth forecast 0.3 per cent to 5.7 per cent, lifting its yuan target to 6.65 to the dollar and predicting another 16 per cent jump in MSCI's fast-rebounding Chinese equity index.
'We believe the market is under-appreciating the far-reaching ramifications of reopening, and the possibility that a robust cyclical recovery can occur despite lingering structural headwinds,' said Morgan Stanley's analysts in a note.
For the stock market, which is already up 45 per cent up since late October, they likened the current situation to that in late 2008 and early 2009 after the global financial crisis when many international investors had sold down their positions and were left underexposed to Chinese markets.
SeaNews Turkey
