Morgan Stanley has raised its targets for Chinese stocks.

Foreks - Morgan Stanley (NYSE:MS) has raised its index targets for Chinese stocks for the second time this year, citing improved earnings growth forecasts and a more optimistic outlook for the economy and currency. The bank has increased its year-end index targets for the Hang Seng Index, Hang Seng China Enterprises Index, MSCI China Index, and China’s CSI300 Index to 25,800, 9,500, 83, and 4,220 points, respectively.

In a note, the American bank stated, “The new and higher index price targets stem from moderate increases in earnings growth forecasts and higher valuation targets.” It also referred to “improving macro and currency outlook projections.” Morgan Stanley noted that companies tracked by the MSCI China Index reported an “8% solid net increase” in earnings results for the fourth quarter of last year, both in terms of the number of companies and weighted earnings. Chinese stocks have gained momentum this year, with the MSCI China Index rising approximately 16% so far, outperforming global counterparts. This surge is fueled by investor optimism surrounding advancements in productive artificial intelligence and Beijing’s stimulus measures aimed at boosting consumption and supporting the broader economy.