Damo: Raise the Hang Seng Index target to 25,800 points by the end of this year

The Zhitong Finance App learned that Morgan Stanley released a research report stating that the year-end targets for the 2025 Hang Seng Index, China Enterprise Index, MSCI China Index, and the Shanghai and Shenzhen 300 Index will be raised to 25,800 points, 9,500 points, 83 points, and 4,220 points, respectively. Damo's previous targets for the above indices were 24,000 points, 8,600 points, 77 points, and 4,200 points, respectively. This increase directly benefited from an increase in profit growth forecasts.

Damo believes that MSCI China is finally on the right track. After 13 consecutive quarters of profit falling short of expectations, profits surpassed expectations for the first time, and at the same time, the decline in profit forecasts is nearing an inflection point. In the global stock market, China's profit currently exceeds expectations, ranking second. Because of the number of companies, net profit exceeds expectations by 8%, while Japan is ranked first, with 13%. Damo believes that the valuation of the MSCI China Index should be comparable to the MSCI Emerging Markets Index, reducing its long-term discounts.