Goldman Sachs upgraded its call on Chinese stocks to overweight

Goldman Sachs raised its call on Chinese stocks to overweight, due to optimism over Beijing’s stimulus measures.

Bloomberg (portal) with the report. In short (very):

• Chinese stocks could rise another 15% to 20% if the authorities fulfill their policy promises.
• Valuations are below historical averages, earnings could improve, and global investor interest remains low.
• Recent stimulus measures have strengthened confidence that policymakers are taking adequate action to reduce economic risks.
• Goldman Sachs raised its targets for the MSCI China Index and the CSI 300, implying a return of 15% to 18%.
• Goldman warned of potential risks, including weak fiscal stimulus, profit-taking, US elections, and tariff concerns.

This article was written by Eamonn Sheridan at www.forexlive.com.