Goldman Sachs cuts earnings outlook for MSCI China to zero progress

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In China, folks usually purchase flats earlier than they’re accomplished. Pictured right here on June 28, 2022, are unfinished residences in Nanning, Guangxi Zhuang Autonomous Area.

Future Publishing | Future Publishing | Getty Pictures

BEIJING — Goldman Sachs has lower its forecast for the MSCI China index on account of a worsening hunch in China’s property market.

The funding financial institution slashed its earnings outlook for the index to zero progress for the yr, down from 4% beforehand, in keeping with a report revealed late Thursday.

The analysts additionally lower their MSCI China value goal over the subsequent 12 months to 81, down from 84. MSCI China tracks greater than 700 China shares listed globally, together with Tencent, BYD and Industrial and Business Financial institution of China.

The index has tumbled greater than 6% in July alone as worries about China’s property market added to present considerations about Covid, tech regulation and geopolitics.

The brand new, decreased goal means there’s one other 18% upside from the index’s shut of 68.81 on Friday, nevertheless it additionally means the index is predicted to say no by about 3% this yr versus posting a light acquire.

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