Xi-Trump meeting could lift Chinese stocks 12%: Morgan Stanley

‘Moderate’ upside is possible as investors ‘direct attention back to China somewhat’, assuming trade truce is extended, bank says The bull case stretches to 27 per cent for the MSCI China gauge if the bilateral relationship improves and China breaks out of its deflation cycle. “We believe moderate index level upside is possible” based on the truce continuing, said the investment bank’s equity strategists. Investors would “direct attention back to China somewhat, after being occupied by the Middle East/Hormuz situation”, as well as the AI-related “supercycle” that had been making neighbouring markets such as South Korea, Taiwan and Japan “stand out more”, they said.

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