October 5, 2010 (Chinavestor) The MSCI China Index could be in a for a tumble of 10% to 15% this quarter as Beijing shifts its attention away from propping up China's economy as growth moderates, according to the Royal Bank of Scotland. The MSCI China Index surged 8.3% in September and is up 3% year-to-date.
Chinese policy makers also pledged to quicken the introduction of a trial of a property tax, prompting RBS analysts led by David Ng to say that the moves are the start of a “third round of cooling measures," Bloomberg News reported.
RBS said lingering concerns about the Eurozone's sovereign debt woes and lack of veracity in the U.S. are issues outside of China that could weigh on global stocks. The bank said the MSCI China Index shouldn't drop more than 15% from its September highs and that investors can go shopping for Chinese stocks in November or December.