Morgan Stanley upgrades China shares as world traders cheer on Covid reopening hopes

Morgan Stanley upgrades China stocks as global investors cheer on Covid reopening hopes

Hong Kong
CNN Business

Global traders are increasingly feeling more bullish on China, as they bet the country will gradually unwind Covid restrictions following widespread protests.

Multiple cities across China loosened Covid-19 restrictions over the weekend. Starting Monday, Shanghai residents will no longer require a negative Covid test result to enter outdoor venues including parks and scenic attractions.

Investment bank Morgan Stanley

(AANXX) has upgraded its view of the future performance of Chinese equities for the first time in nearly two years.

“Multiple positive developments alongside a clear path set towards reopening warrant an upgrade and index target increases for China,” its analysts said in a research note on Monday. They raised China equities to “overweight” from “equal-weight,” a position they had held since January…