The wave of the rise of Chinese equities generates a division between investment institutions

A wave of liquidity -ups in Chinese stocks has elicited controversy between the Wall Street analysts about its sustainability, at a time when the total indicators of the economy are still weak. Goldman Sachs strategy increased their 12 -month target for the CSI 300 index to 4,900 points from 4500 points on Thursday, citing supporting evaluation measures, the growth of higher status, in addition to appropriate positioning in the market. On the other hand, Morgan Stanley’s analysts were more cautious, referring to early signs of an acute price inflation. “The upper direction still exists despite the pressure of profit in the short term. Liquidity factors and the expansion of assessments, not the periodic basic principles of the macro economic economy, were the most important driving for the global stock profits, including China,” the strategy of “Goldman Sachs”, including Konion Lao. Strong profits for Chinese stocks despite the slow economic background, Chinese stocks earn strong profits. The CSI 300 reference index rose by about 10% this month and became one of the best main performance indicators. The different views between the two institutions reflect the variation of the risk files with which investors must handle, as it appears that the ascension is driven by liquidity, more than a sustainable economic power. Also read: Standard flow that supports Chinese stocks in the light of the vessels graphics, and the analysts of Morgan Stanley indicated that although the signs of heat have not yet appeared, the improvement of the basic principles of companies and increasing political support should be followed soon. “There is still an additional liquidity available to allocate it in shares, but it is dependent on the ability to take advantage of companies and government policies to follow up so quickly, they added:” Also, the previous short -lived efforts to the arrows of the AS, the major obstacle to the sustainability of ascension, still in the basics and prospects for long -term growth. “