TechFlow, on December 10, according to Jinshi Data, JPMorgan's Chief China Equity Strategist Mia Liu stated that she is optimistic about the performance of MSCI China Index and CSI 300 Index constituents next year, primarily driven by earnings growth. She believes both indices could see earnings per share increase by 15% next year.
JPMorgan set a target price of 100 for the MSCI China Index, implying an upside potential of about 18%, and a target of 5,200 for the CSI 300 Index, representing a rise of approximately 12%. She added that this year’s earnings performance for the MSCI China Index has been unsatisfactory, mainly due to competition among the three major food delivery giants. However, with the end of the platform rivalry—having forecasted that Q3 of this year marked the worst point of losses—and coupled with recovering inflation levels, confidence in index performance is rising. Liu said another theme to watch going forward is anti-overcompetition ("fan nei juan"), which she believes could last at least ten years and would be highly beneficial for stock market performance.
