Goldman Sachs upgraded its call on Chinese stocks to overweight, due to optimism over Beijing’s stimulus measures.
Bloomberg (gated) with the report. In (very) brief:
Chinese equities could rise another 15%-20% if authorities deliver on policy promises.Valuations are below historical averages, earnings could improve, and global investor interest remains low.Recent stimulus measures have bolstered confidence that policymakers are taking sufficient action to reduce economic risks.Goldman raised its targets for the MSCI China Index and CSI 300 Index, implying a 15%-18% return.Goldman cautioned about potential risks, including weaker fiscal stimulus, profit-taking, US elections, and tariff concerns.
This article was written by Eamonn Sheridan at www.forexlive.com.
