Goldman Sachs leads bullish chorus on Chinese stocks, as Morgan Stanley and JPMorgan’s private bank remain cautious

A spectacular run in Chinese stocks has divided global investment banks into two camps, with Goldman Sachs, UBS Group and HSBC Holdings firmly in the bullish camp while Morgan Stanley and JPMorgan Chase’s private-banking unit remain cautious.

Goldman has raised its targets for both the MSCI China Index and the CSI 300 Index by at least 5 per cent this week to reflect diminished tail risks and earnings optimism. UBS and HSBC also expect continued gains, arguing that the rally will be underpinned by policy support and depressed valuations.

Source: TRADE FINANCE