I posted on Morgan Stanley boosting its China view earlier:
Adding a little more now, their view on the currency. Morgan Stanley has reiterated that currency strength plays a critical role in the performance of Chinese equities, particularly in offshore markets.
In a recent note, the bank highlighted that because foreign investors typically fund positions in U.S. dollars, a stronger or more stable yuan can act as a positive catalyst for asset allocation into China.
- revised its USD/yuan projection to 7.35 by
mid-2025 (prior 7.5) - and 7.50 by the end of this year (prior 7.60)
This article was written by Eamonn Sheridan at www.forexlive.com.