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Factbox-Analysts’ 2022 outlook for Chinese assets -Breaking

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© Reuters. FILE PHOTO – Investors stand in front of a display board that shows stock information in a brokerage house in Hangzhou Zhejiang Province, China, February 3, 2020. China Daily via REUTERS

SYDNEY, (Reuters) – After a difficult year in the financial markets, investment houses started publishing predictions about Chinese asset prices for 2022.

After losing 14% in 2021 and a loss of more than 4.4%, the equity index has seen a rise of about 4.4% thus far this year.

Nearly 3% in MSCI China Index rose after losing 23% last year. This compares to a 17% gain in world stocks within the same period.

January 13, 2009, the Hang Seng was 24,422, MSCI China 86.082 and blue-chip CSI300 at 4,818.8.

This is a brief summary of some projections about Chinese assets for the end 2022.

INVESTMENT AANG SENG MSCI CHINA. CSI300

HOUSE TARGET TARGET

Goldman 105 5,500

Sachs (12-month

forecast)

Morgan 25,000 95 6.4

Stanley

5,300

Barclays (LON:) 6.5

HSBC 28030

5,600

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’s worst ever relative performance drawdown against broad emerging market markets has occurred in 2021… However, this record-breaking year still leaves us with some concerns that may lead to more volatility or downside in the future. We believe now isn’t the best time to be bullish on a broad index.

* HSBC

We believe markets were too eager to sell Chinese stocks… Most funds are overweight and we expect this market to rebound as soon as growth in China is back in focus.

* Credit Suisse (SIX:)

We remain positive on China’s A-share market, in spite of the potential negative effect from Fed tightening cycles. “In the context of a relatively favorable policy environment, reasonable liquidity and an expected relative friendly policy environment, we are still constructive.” 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.

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