JPMorgan: MSCI China Index Expected to Rise Nearly 20% Next Year, Focus on Anti-Internal Competition

According to TechFlow News on December 10, citing Jinshi Data, JPMorgan’s Chief China Equity Strategist Liu Mingdi expressed an optimistic outlook for next year’s MSCI China Index and CSI 300 Index constituent stocks. The main reason is profit-driven growth among the constituent stocks, and it is believed that both indexes could see earnings per share growth of 15% next year.

JPMorgan has set a target price of 100 for the MSCI China Index, representing an upside of about 18%. The target price for the CSI 300 is set at 5200, an increase of around 12%. Liu further pointed out that this year’s MSCI China Index earnings performance was less than ideal, mainly due to competition among the three major food delivery giants. However, as competition among food delivery platforms comes to an end—as predicted, Q3 of this year is already the worst in terms of losses—coupled with a rebound in inflation levels, there is confidence in the index’s performance. Liu Mingdi also stated that anti-involution (anti-cutthroat competition) is another theme to watch going forward, and he believes this theme could last for at least ten years, which would be very favorable for the stock market’s performance.