Recently, as China continues to release positive policies to support economic recovery, coupled with its own low valuations, foreign institutions are bullish on Chinese assets.
Goldman Sachs Group: thanks to China's re-opening up and some key policy changes, Chinese stocks may rise another 15 per cent this year. Raise the 12-month target for the MSCI China index to 80 from 70, and the renminbi is expected to rise to 6.50 against the dollar by the end of the year.
Morgan Stanley: China's GDP and corporate profits will accelerate in 2023, and China's stock market will become the best performing stock market in the world. Raise the year-end target for the MSCI China Index to 80 from 70 and the Hang Seng Index's December target to 21200 from 18200.
Bank of America Corporation: long Chinese stocks is one of the top ten trading trends in 2023.
HSBC: forecasts that China's GDP will grow by 5% year-on-year in 2023, and significantly increase China's GDP growth forecast to 5.8% in 2024. Maintain the "overweight" view on Chinese and Hong Kong stocks, with the Hang Seng Index targeting a price of 22810 points at the end of the year.
UBS Securities: China's policy of stable economic growth will continue to work, and a series of monetary, fiscal, real estate and credit policies will be further strengthened to promote the overall upward trend of the stock market.
Franklin Templeton: the recovery in earnings growth in 2023 is likely to be a market catalyst, and the Chinese market may become a bellwether for emerging markets.
The performance of Chinese stocks is very strong, and the data show that
In the three months to January 11, the Nasdaq China Golden Dragon Index, which tracks Chinese companies listed in the United States, fought back, rebounding nearly 36%, leading the world and soaring 90% since its low on October 24.
The hang Seng technology index followed closely, rebounding 34 per cent in the past three months, 68 per cent from the lowest point in the range.
The hang Seng index has risen 24 per cent in the past three months, rebounding 46 per cent from its lowest point in the range.
Through observation, Guoxin analysts found that northbound capital began to accelerate its inflow into A shares after October last year, and foreign capital has steadily flowed into the Hong Kong stock market since the beginning of November.
Goldman Sachs Group's report also shows that the Chinese stock market was the most bought last week, with the net buying volume reaching its highest level since early December, mainly due to the buy long of A shares and the relatively small scale of ADR buying of US stocks. And the Chinese stock market has been bought net for the third week in a row and the fifth week in the last six weeks, with daily net purchases in the past 13 trading days up to Friday. The combined allocation of onshore and offshore Chinese stocks is 9.5 per cent higher than the MSCI ACWI global index, and the overmatching is the highest since October 2020.
In terms of individual stocks, Chinese stocks in the United States have led the rise in the US stock market since January this year.$TAL Education (TAL.US)$、$JinkoSolar (JKS.US)$、$Alibaba (BABA.US)$、$KE Holdings (BEKE.US)$All increased by more than 30%.$New Oriental (EDU.US)$、$Baidu (BIDU.US)$Increase by more than 17%$Bilibili (BILI.US)$、$Pinduoduo (PDD.US)$Wait for an increase of more than 15%.
After many days of strength, how long will Chinese stocks rise? How much room does the current share price have from the target price of Wall Street analysts?
According to Bloomberg data, analysts are right$NIO Inc (NIO.US)$、$Li Auto (LI.US)$、$XPeng (XPEV.US)$The consensus target prices for the next 12 months are US $17.67, US $33.9 and US $14.06, respectively, 57.2% and 39.3% higher than the closing price on January 10, respectively.
For the best performers since January$TAL Education (TAL.US)$The analyst's target price is $7.44, 21.7% lower than the current price. In addition, analysts believe that$Alibaba (BABA.US)$And22% potential room for growth。
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