The Hong Kong A-shares market suddenly surged, with the Hang Seng Technology Index rising nearly 3%! What happened?
Analysts believe that the market rebound is partly related to the decline of the US dollar, and also partly due to market expectations for the upcoming year-end heavyweight meeting.
Daiwa downgrades the rating of Chinese stocks to 'slightly underweight', while High Yield downgrades the rating of Hong Kong stocks to 'underweight'.
Wall Street's major banks have become more cautious about the Chinese stock market, mainly due to persistent deflationary pressures and geopolitical tensions. Morgan Stanley has downgraded its rating on Chinese stocks to 'slightly underweight', believing that the Chinese government's likelihood of introducing fiscal stimulus for consumption and housing issues ahead of schedule next year is very limited, as it is concerned that the mainland will worry about moral hazards and premature transition to a welfare state. This will pose stronger downside risks to corporate profits and market valuations in the coming months. The year-end target for the MSCI China Index is 63, slightly lower than last Friday's (15th) closing of 63.93. Goldman Sachs has also
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UBS Group raises target price for MSCI Chinese Index to 70.
UBS Group Investment Banks research department stated that the Chinese stock market saw a significant increase last week. The MSCI Chinese Index surpassed the May high of this year, currently valued at 10.6 times the dynamic PE. The bank believes there may be further upside potential, especially in the short term, although the future trend largely depends on the extent of fiscal support and the implementation of various policy stimuli. Wang Zonghao, director of UBS Group Investment Banks China stock strategy research, stated that the year-end target price for the MSCI Chinese Index has been raised to 70, 7% higher than the latest closing price, to reflect policy coordination improvement, US interest rate cuts, and progress in corporate governance reforms. Continued use of leverage.
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