Chinese Stocks Could Rise Another 20% in the Coming Year, Says Goldman Sachs

Dow Jones2023-02-21

China's reopening this year after years of Covid-19 lockdowns could bolster the country's stocks by about 20% over the next 12 months, Goldman Sachs wrote in a note Monday.

Stocks in China have recently lost some of their luster. After rallying 59% from October lows through the Lunar New Year in January, they've lost about 9% over the past month.

That's similar to the typical shift in a stock market cycle when investors move from a "Hope" phase, when share prices go up on optimism alone, to a "Growth" phase in which prices rise on evidence of strengthening earnings, Goldman wrote.

"The principal theme in the stock market will gradually shift from reopening to recovery, with the driver of the potential gains likely rotating from multiple expansion to earnings growth and delivery," analysts led by Kinger Lau said.

Hong Kong's Hang Seng Index rose 0.8% on Monday.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2312799930?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-02-21 10:01","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2312799930","market":"sh","top_or_hot":-1,"title":"Chinese Stocks Could Rise Another 20% in the Coming Year, Says Goldman Sachs","media":"Dow Jones","content":"<html><head></head><body><p>China&#39;s reopening this year after years of Covid-19 lockdowns could bolster the country&#39;s stocks by about 20% over the next 12 months, Goldman Sachs wrote in a note Monday.</p><p>Stocks in China have recently lost some of their luster. After rallying 59% from October lows through the Lunar New Year in January, they&#39;ve lost about 9% over the past month.</p><p>That&#39;s similar to the typical shift in a stock market cycle when investors move from a &#34;Hope&#34; phase, when share prices go up on optimism alone, to a &#34;Growth&#34; phase in which prices rise on evidence of strengthening earnings, Goldman wrote.</p><p>&#34;The principal theme in the stock market will gradually shift from reopening to recovery, with the driver of the potential gains likely rotating from multiple expansion to earnings growth and delivery,&#34; analysts led by Kinger Lau said.</p><p>Hong Kong&#39;s Hang Seng Index rose 0.8% on Monday.</p></body></html>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Chinese Stocks Could Rise Another 20% in the Coming Year, Says Goldman Sachs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nChinese Stocks Could Rise Another 20% in the Coming Year, Says Goldman Sachs\n</h2>\n\n<h4 class=\"meta\">\n\n2023-02-21 10:01 北京时间&nbsp;&nbsp;&nbsp;<strong>Dow Jones</strong>\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>China's reopening this year after years of Covid-19 lockdowns could bolster the country's stocks by about 20% over the next 12 months, Goldman Sachs wrote in a note Monday.Stocks in China have ...</p>\n\n<a href=\"\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"HSI","symbol_name":"恒生指数","start_time":0,"source_url":"","article_id":"2312799930","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2312799930","pubTimestamp":1676944875,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"China's reopening this year after years of Covid-19 lockdowns could bolster the country's stocks by ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"HSI":"恒生指数","000001.SH":"上证指数","HSTECH":"恒生科技指数"},"translate_title":"高盛表示，中国股市未来一年可能再上涨20","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"000001.SH":0.9,"HSI":0.9,"HSTECH":0.9},"content_text":"China's reopening this year after years of Covid-19 lockdowns could bolster the country's stocks by about 20% over the next 12 months, Goldman Sachs wrote in a note Monday.Stocks in China have recently lost some of their luster. After rallying 59% from October lows through the Lunar New Year in January, they've lost about 9% over the past month.That's similar to the typical shift in a stock market cycle when investors move from a \"Hope\" phase, when share prices go up on optimism alone, to a \"Growth\" phase in which prices rise on evidence of strengthening earnings, Goldman wrote.\"The principal theme in the stock market will gradually shift from reopening to recovery, with the driver of the potential gains likely rotating from multiple expansion to earnings growth and delivery,\" analysts led by Kinger Lau said.Hong Kong's Hang Seng Index rose 0.8% on Monday.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":9,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2312799930"}