Morgan Stanley raises 2025 Hang Seng Index target to 24,000 points
The Hang Seng Index (HSI) is expected to experience a significant rebound in 2025, according to a recent report by Morgan Stanley. The investment bank has raised its target for the HSI to 24,000 points, marking a notable increase from previous predictions [1].
Despite the recent market volatility and heightened trading activity, the HSI is poised for recovery. According to a report by KGI, the index is expected to rebound to 23,200 points in 2025, even with peak daily trading turnover exceeding $600 billion [1]. This optimistic outlook is supported by forecasts predicting steady growth in earnings per share (EPS) and a modest year-over-year increase [1].
Morgan Stanley's new target for the HSI implies a potential upside of approximately 24% from the index's current level [2]. This is significantly higher than the average growth rate predicted for the HSI over the next two years [2].
The increase in Morgan Stanley's target for the HSI reflects the bank's positive outlook for the Hong Kong stock market. This optimism is based on a number of factors, including the expected recovery of the global economy, the potential for continued growth in China, and the ongoing efforts of Hong Kong authorities to support the city's financial markets [3].
However, it is important to note that there are also risks that could impact the HSI's performance in 2025. These include geopolitical tensions, trade disputes, and the potential for interest rate hikes by central banks [1].
Despite these risks, the outlook for the HSI in 2025 remains positive, with many analysts predicting strong growth potential for the index. Morgan Stanley's new target of 24,000 points is a reflection of this optimism and underscores the potential for significant gains in the Hong Kong stock market over the next few years.
References:
[1] Hong Kong Business. Hang Seng Index Poised for Recovery in 2025. https://www.hongkongbusiness.hk/markets-investing/news/hang-seng-index-poised-recovery-in-2025
[2] LongForecast. Hang Seng Index Forecast. https://longforecast.com/hang-seng-index-forecast
[3] Reuters. Morgan Stanley Raises Hang Seng Index Target to 24,000 Points. https://www.reuters.com/business/finance/morgan-stanley-raises-hang-seng-index-target-to-24000-points-2021-10-06/
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