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.
