Credit Suisse (CS) 2010 Outlook Dull For China Stocks

Credit Suisse (NYSE: CS) forecasts a tough 2010 of limited upsides for Chinese stocks, with just single-digit percentage gains expected for major indexes. Chinese stock valuations seem to be stretched after 12 months of rallying, as per Credit Suisse’s 2010 Outlook, and a focus on consumer-focused sectors is advised.

A key variable is the assessment of 1 trillion yuan of bank lending. China’s export-dependent economy is also likely to take the brunt of reduced credit by central bankers worldwide.

In contrast, Goldman Sachs (NYSE: GS) is upbeat about China’s prospects, and expects the Hang Seng to end 2010 at a level 30% higher than where it is now.