Posted 11 января 2023,, 11:28

Published 11 января 2023,, 11:28

Modified 11 января 2023,, 11:44

Updated 11 января 2023,, 11:44

Analysts: in the coming year, the yuan will become the leader of growth

Analysts: in the coming year, the yuan will become the leader of growth

11 января 2023, 11:28
Beijing's rejection of the zero tolerance policy for coronavirus should have a beneficial effect on the Chinese economy
Exchange rate

Analysts of the world's leading financial agencies Morgan Stanley and Goldman Sachs unanimously predict strong growth for the yuan and Chinese stocks in 2023 amid the rejection of a zero tolerance policy for coronavirus, Bloomberg writes

So, Morgan Stanley is confident that by the end of the year the yuan will rise to 6.65 per dollar, by 1.8% compared to the current level, and the Chinese market will be in the growth leaders in 2023. The investment bank has raised the target for the MSCI China Index indicator to a level that assumes a 13 percent increase from current values.

"We believe that the market underestimates the comprehensive impact of the opening of the economy and the possibility of a confident cyclical recovery, despite structural constraints," experts noted, predicting the growth of the Chinese economy by 5.7% against the consensus estimate of 4.8%. In China itself, the growth target for the current year can be set at 5%.

Goldman Sachs analysts are also optimistic about China, where they expect the yuan to rise to 6.5 yuan per dollar by the end of the year. Meanwhile, the Chinese currency has already demonstrated the best two-month growth figures since 1994, and the MSCI China index rose by 49% compared to the October low.

Analysts of the channel "Blah-blah-nomika" with reference to the British edition of The Guardian, however, warn:

"Well, the numbers are beautiful, but the coronavirus may well intervene again. Because the latest news about the increase in morbidity in China does not infect optimism..."