Bloomberg reports via a Goldman Sachs note that MSCI China’s earnings growth estimate rose to 13% from 10%. The change comes on the back of increasing nominal growth, favorable flows, and policy stability coming out of China’s national legislative meetings. Other notable estimates include: US$54 billion southbound flows to Hong Kong from mainland China in 2017; mutual funds are 300 basis points underweight on China stocks; in the face of Fed tightening, as well as dollar gains or possible US trade barriers, Asian economies at or near peak momentum; MSCI Asia Pacific ex-Japan index up to 495 from 475; banks now overweight, IT hardware raised to marketweight; and software cut to marketweight, real estate to underweight.
MSCI China earnings growth forecast up to 13% from 10%
Goldman Sachs also raised MSCI Asia Pacific ex-Japan index to 495 from 475
