Hong Kong, 13 May 2026 – China’s corporate profit outlook is expected to improve further in the second quarter after first-quarter earnings showed signs of stabilisation, according to Morgan Stanley, offering fresh support for investors reassessing Chinese equities.
Morgan Stanley strategists led by Laura Wang said Chinese companies’ second-quarter profit outlook is likely to strengthen following encouraging first-quarter results, with rising exports and early signs of reflation helping to support revenue growth. The improvement suggests that earnings pressure may be easing after a difficult period marked by weak demand, deflationary pressure and cautious investor sentiment.
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