Global investment bank Goldman Sachs expects China’s main stock index to rise 30% by the end of 2027, supported by policies that support market mechanisms, profit growth and strong liquidity flows. Strategists at Goldman Sachs, including King Lau, wrote in a research note issued Wednesday that they expect “a more sustainable uptrend in Chinese stock markets.” They added that Chinese stocks are poised for a more stable rise, “similar to the transition of the market cycle from the phase of hope (positive expectations) to growth.” A recommendation to buy China stocks. Last month, Goldman strategists advised investors to take a “buy on the dip” approach in dealing with Chinese stocks, taking advantage of lower valuations and the possibility of increased investment by individuals and institutions. Last July, strategists raised their expectations for the MSCI China index within 12 months from 85 to 90 points, based on improved expectations of reaching a trade deal between the United States and China. Also read: Trump: The high US tariffs on China will not last. The index exceeded the target in early October, but it later declined. It appears to be on track for its first monthly decline in six months, after the wave of gains fueled by hopes related to artificial intelligence subsided. Investors are watching this month’s meetings of the Fourth Plenary Session of the Central Committee of the Communist Party of China, as well as the upcoming talks between US President Donald Trump and Chinese President Xi Jinping, for clues about the stock market outlook. Factors supporting Chinese stocks: Goldman Sachs believes that additional demand-side stimulus and profit growth supported in part by the development of artificial intelligence, in addition to strong capital flows from domestic and foreign investors, are among the most prominent factors supporting the rise of Chinese stocks. He explained that profits could rise 12% over the next three years, while stock multiples could rise between 5% and 10% from their current levels. Also read: China is confident of reaching its growth target despite the rare dip in investment. However, the strategists wrote that the slowdown in cyclical economic growth in the fourth quarter and the return of rate risks “could be used as an excuse to take profits.” But they explained that unless these risks worsen, “investors will continue in the market and take advantage of the drop in prices to increase their investments during the correction period.”
Goldman Sachs: Chinese stocks could rise 30%
