GuShiio.com ① Barron’s Weekly pointed out that optimism about investing in China has rekindled, and the MSCI China Index soared 20%, becoming one of the best performing markets in the world;
② Although China stocks have risen a lot, prices are still cheap;
③ China’s active investment in strategic areas is bringing returns and is expected to bring profit and valuation growth to the vast ecosystem of China technology companies.
Financial Union, March 9 (Editor Niu Zhanlin)At a time when the Trump administration has launched a trade war and stirred up global financial markets, China stocks are in full swing. A recent article by the well-known financial media Barron’s Weekly stated that optimism about investing in China has been rekindled. Foreign investors are no longer avoiding China stocks, but are instead actively looking for buying opportunities.
Data shows that as of March 7 this year, the MSCI China Index has soared by 20%, becoming one of the best performing markets in the world. At the same time, as investors are uneasy about repeated changes in Trump’s tariff policy, the Nasdaq has fallen into correction territory, and the S & P 500 index hit its largest weekly decline this week since September 6.
Against the backdrop of the continued rise of China stocks, Barron’s pointed out that short sellers began to revalue China stocks. Wang Ying, chief equity strategist at Morgan Stanley China, and her team have upgraded the rating of the MSCI China Index to Equal weight in the latest research report.
Morgan Stanley predicts that by the end of 2025, the MSCI China Index will reach 77 points, a significant increase from the previous target forecast of 63 points; and raises the Hang Seng Index’s year-end target from 19400 points to 24000 points, while maintaining its target forecast for the Shanghai and Shenzhen 300 Index at 4200 points.
Barron’s said that although China stocks have risen a lot, prices are still cheap. The MSCI China Index has a P/E ratio of 12 times for the next 12 months, compared with the S & P 500’s P/E ratio of 22 times for the next 12 months.
The market may continue to fluctuate due to tariff issues, but China has enough reserve tools and policy space to deal with uncertainties, which is also the biggest driving force behind the rise of China’s stocks.
In addition, China’s active investment in strategic areas is paying off, and most regions of the world will use China technology. Whether it is new energy, 5G, automobiles or DeepSeek, it is expected to bring profit and valuation growth to the vast ecosystem of China technology companies.
What is particularly noteworthy is that the emergence of DeepSeek is a landmark event in the history of the development of artificial intelligence in the world and a shock to global investors. Driven by global funds, the Hang Seng Technology Index has risen by 35% this year.
At the same time, a series of technological developments in China are putting pressure on U.S. technology stocks, and even positive results have failed to boost confidence. Macroeconomic uncertainty and concerns about high valuations in the U.S. market are fueling the prospect of an AI-driven technology bubble bursting.
bullish on China
Prior to this, many foreign institutions have continued to be optimistic about the China market. Analysts at Goldman Sachs predict that as global funds increase their exposure to China, Hong Kong stocks may still be the first choice for investors, but the momentum of A-shares may also improve in the near future.
Liu Jinjin, chief China equity strategist at Goldman Sachs, and his team said that the MSCI China Index will reach 85 points in the next 12 months, higher than their previous target of 75 points; and raised the target of the Shanghai and Shenzhen 300 Index for the next 12 months from 4600 points to 4700 points, with a upside potential of 19%.
Edward Cole, head of multi-strategy equity business at Insman Group, said he expects the bottom of stock prices and the new appreciation that China’s artificial intelligence innovation will bring to China stocks will drive investment recovery.”China stocks are one of the most confident deals in 2025.”
Wedbush analyst Dan Ives said investors are trying to bet on China’s technology market, which is a smart move. It is precisely because of its success in the field of artificial intelligence that investors around the world are optimistic about the China market.
