Dear clients,
The gradual easing of the zero-covid policy once again makes China a platform for promising investments, analysts at Morgan Stanley say.
Since the start of the month, cities across the country, including Shanghai and Shenzhen, have been relaxing their Covid-19 testing requirements. According to many analysts, this indicates the curtailment of tough restrictive measures by Beijing in favor of economic recovery. In 2023, according to the bank’s experts, China and Hong Kong will experience rapid growth in the stock market. We are talking about a rise of 13-14%.
At the same time, Morgan Stanley advises against rushing, as the real economic effect will be noticeable only by the second quarter of the year.
„The path will be bumpy,“ the strategists note. „Market volatility could stay high owing to wide swings in sentiment between over-optimism for a fast reopening and at times rapid disappointment regarding a seemingly slow and zig-zagging move towards a Covid-zero exit.“
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