SYDNEY, Jan 13 (Reuters) - Investment houses have started
publishing their predictions for Chinese asset prices in 2022
following a bruising year for the financial markets.
The Hang Seng equity index has gained about 4.4% so
far this year after losing more than 14% in 2021.
The MSCI China index rose nearly 3% after
wiping out 23% of its value last year, against a 17% rise in
world stocks during the same period.
On Jan. 13, the Hang Seng was at 24,422, MSCI China at
86.082 and the blue-chip CSI300 index at 4,818.8.
Here is a summary of some forecasts for Chinese assets at
the end of 2022:
INVESTMENT HANG SENG MSCI CHINA CSI300 USD/CNY
HOUSE TARGET TARGET TARGET
Goldman 105 5,500 6.2
Morgan 25,000 95 5,300 6.4
HSBC 28,030 5,600
* GOLDMAN SACHS
"We believe Chinese stocks will have a better year in 2022
as the market recovers from a major correction and transitions
into a 'hope' phase, where P/E expansion typically trumps weak
fundamental growth and drives strong equity gains."
* MORGAN STANLEY
"MSCI China has had its worst ever relative performance
drawdown versus broad emerging markets in 2021 ... despite such
a record underperforming year, we still see some lingering risks
skewed towards higher volatility or more downside in the near
term. This makes us believe that now is not yet the right time
to go bullish at a broad index level."
"We think markets have been overzealous in selling Chinese
stock ... most funds are underweight and as the focus returns to
growth in China, we think this market will roar back."
* Credit Suisse
"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. The Hong Kong stock market is
likely to have a bigger impact from overseas macro and market
volatilities, while we expect sector rotation could tilt back
(Reporting by Tom Westbrook and Winni Zhou; Editing by Rashmi
Aich, Shailesh Kuber and Shounak Dasgupta)