Morgan Stanley anticipates that if the Chinese government unveils additional spending measures in the coming weeks, China's stock market might climb by 10% to 15%. This potential fiscal expansion has reignited investor interest in China, focusing on re-inflationary prospects.
According to Laura Wang, Morgan Stanley's Chief China Equity Strategist, the current outlook allows investors to view China through a re-inflationary lens, something not seen since early last year. At that time, global investors valued the MSCI China Index at an expected price-to-earnings ratio of around 12 times.
