Wall Street Banks Cut China Corporate Profit Forecasts as Covid Drags

(Bloomberg) — Some Wall Street banks are cutting profit estimates for Chinese companies, citing impact from the recent Covid flareups and subsequent lockdowns.

UBS Global Wealth Management trimmed its earnings growth estimate to 11% from 13%, and expects downward revisions to continue in the second quarter, strategists including Eva Lee wrote in an April 22 note. They see earnings of Chinese firms stabilizing “around mid-year after more supportive policies are implemented.”