SYDNEY, (Reuters) – Investment houses began publishing predictions about Chinese asset prices for next year. After a turbulent 12 months on financial markets bulls now have a more tempered outlook.

The equity index is down 13%, while the MSCI China Index has dropped 20%. This contrasts with a 12% increase in world stocks.

The Hang Seng stood at 23.714, MSCI China was at 86.733, and the blue-chip CSI300 Index at 4.854.6 on Dec. 2.

Below is an overview of forecasts regarding Chinese assets by 2022.

INVESTMENT HANG SEENG MSCI CHINA.CSI300

HOUSE TARGET TARGET

Goldman Sachs (NYSE:) 105 5,500 6.2

(12-month

f’cast)

Morgan Stanley (NYSE:) 25,000 95 5,250 6.4

Barclays (LON:) 6.5

HSBC 28030

Standard 6.5

Chartered

KEY COMMENTS

*GOLDMAN SACHS

We believe that Chinese stocks will enjoy a better 2022 year as the market recovers after a significant correction. The market then transitions to a “hope” phase where strong equity gains and P/E growth typically triumph over weak fundamental growth.

*MORGAN STANLEY

MSCI China experienced its worst ever relative performance decline vs. other emerging markets in 2021…but despite this record-breaking year, there are still some risk factors that will tilt towards greater volatility or more downside in near future. According to this, we believe it is too late for broad-index bullishness.

*HSBC

“We believe that markets have overreacted in selling Chinese stock… many funds are underweight, and as China’s growth focus shifts to China, this market will rebound.”

** Credit Suisse (SIX:)

“Amid the expected relatively friendly policy environment and reasonable liquidity, we remain constructive on China A-share markets, despite the possible negative impact from the expected Fed’s tightening cycle. While we anticipate that Hong Kong’s stock market will feel more adverse effects from market volatility and overseas macro, sector rotation might be favorable for growth.