Morgan Stanley Forecasts Further Decline in Chinese Company Shares
Offshore stocks, according to analysts, may lose 10–15%
The Chinese market has already entered a bear phase: since its June peak, it has lost over 20%. Morgan Stanley analysts attribute the pressure on quotes to an economic slowdown and weak consumer demand.
Valuations of mainland companies' shares, according to their forecast, may drop to approximately 10–11 times expected annual earnings. The sell-off has continued for more than ten weeks; among the factors cited are a tax on trusts, pressure on e-commerce, worsening macroeconomic conditions, and volatility in global markets.
Despite this, analysts maintain a preference for mainland Chinese stocks. In their view, the market is supported by a group of state investment funds, and among local issuers, there are many companies with rapid revenue and profit growth, including AI developers and advanced technology enterprises.
