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

Dow Jones02-21

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.


We need your insight to fill this gap
Leave a comment