Citi Upgrades China to Overweight, Downgrades South Korea; Eyes 12% Upside for MSCI Emerging Markets by End-2026

MSCI-0.58%
According to BlockBeats, Citi upgraded China to overweight and downgraded South Korea to neutral on July 19, citing concentration risks in emerging market gains. The firm targets MSCI Emerging Markets Index at 1,870 points by end-2026, implying roughly 12% upside from current levels, and 2,050 points by mid-2027. China qualifies as a beneficiary of broadening gains given low positioning and valuations, while South Korea faces elevated volatility from concentrated holdings and retail leverage.
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