Goldman Sachs sees 30% upside for China stocks through 2027
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Goldman Sachs Group Inc. expects China’s key stock index to gain 30% by end-2027, supported by pro-market policies, rising profits and strong money flows. “We now call for a more sustained uptrend for China equities,” strategists including Kinger Lau wrote in a note dated Wednesday. The nation’s stocks are poised for a less volatile advance, “reminiscent of an equity cycle transition from hope to growth.” Goldman strategists last month said investors should embrace a “buy-on-dip mindset” on the country’s shares amid undemanding valuations and potential for greater household and institutional allocation. In July, they raised their 12-month target for the MSCI China Index to 90 from 85, citing improving prospects for a US-China trade deal. The gauge surpassed that target in early October but has retreated since. It’s on track to decline for its first month in six after a rally propelled by artificial intelligence optimism cooled. Investors ...