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.
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