China’s A-share market’s performance after the May Day holiday has been encouraging, with the Shanghai Composite Index hitting a 10-month high on Monday (April 8th), mainly driven by state-owned banks and other state-owned enterprise, while the CSI300 Index hit the highest since June last year, with trading volume doubled on month in the past three trading days, Morgan Stanley said in a research note.
The Shanghai Stock Exchange plans to hold a ETF roadshow on “Discovering Investment Value and Promoting the Valuation Return of State-owned Enterprise” on May 11th.
Morgan Stanley believes that the event will become a driving force for further upward movement of A-shares, and expects the CSI300 Index to move towards 4500, with a potential increase of about 11%.
