Worst could be over for Chinese stocks as analysts stop slashing estimates – The National

Worst could be over for Chinese stocks as analysts stop slashing estimates – The National

A stabilisation in earnings expectations is adding to optimism that the worst may be over for China’s beleaguered stocks.

Analysts have stopped cutting forward estimates for MSCI China members, after slashing them by 10 per cent since early March, figures compiled by Bloomberg show. Goldman Sachs Group and China International Capital expect profits to rise for the benchmark in the second half of this year.

And a string of better-than-feared results by internet giants including Alibaba Group Holding and Baidu ― which led to double-digit gains in their shares ― suggests some investors had become too pessimistic about the outlook for earnings.