China’s recovery is taking longer, so Citi is pushing back its stock rebound forecasts.
As a result of China’s slower-than-anticipated economic recovery, Citi analysts have revised their projections for a stock market recovery by three months.
According to experts in a study released on Thursday, Citi now anticipates that the Hang Seng Index won’t reach 24,000 until the end of September rather than June. That is almost 18% higher than present levels.
The Hang Seng Index closed at 20,331.20 on Thursday.
According to Citi Research, “We estimate [first-quarter corporate] results to be on the worse side as post-COVID recovery seems slower than projected.” 316 Chinese enterprises’ 2022 performance was analyzed, and it was claimed that more misses than beats were discovered.
Over the first two months of the year, China’s economy has shown signs of modest revival. In December, the nation lifted its strict COVID restrictions.
Consumers continue to be frugal spenders, according to earnings from JD.com and Alibaba, two of the largest e-commerce companies in China.