Benzinga - On CNBC, Laura Wang of Morgan Stanley said we’re getting "more bullish" on Chinese stocks after turning constructive on the country’s markets at the start of December last year.
She expects the MSCI China index to surge to 80 points by the end of 2023 and sees Hang Seng Index climbing to 24,500 before the end of the year. This implies that the Chinese stock markets will see be the top performers in the global equity markets this year. "This is the time to get back into China," Wang said. An ETF that tracks the Chinese index movements is the iShares MSCI China ETF (NASDAQ: MCHI).
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The number one trade Wang recommends to investors is buying "large-cap highly-liquid internet names." She believes this is the time to get back into the internet sector, as it has a very high correlation with the general momentum of the pickup in Chinese consumption.
Shares of Chinese internet stocks fell on Tuesday, including Alibaba Group Holding Ltd – ADR (NYSE: BABA) down 1.6%, while JD.Com Inc (NASDAQ: JD) shares dropped by 5.7%.
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