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<Research>G Sachs: Easing CN-US Trade Tensions/ Other Factors Boost A-shr Indices to New Highs; MSCI China Index Target Raised to 90
Recommend 63 Positive 92 Negative 48 |
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After a period of consolidation in the Chinese stock market from June to July, Chinese equities have recently broken out of their trading ranges, with the MSCI China Index/ CSI 300 Index reaching a 4-year high and a new YTD high respectively, Goldman Sachs published a research report saying. Key factors include the easing of China-US trade tensions, strong 2Q25 GDP data, government policies against 'involution', the recovery of Hong Kong's IPO market, record inflows of southbound funds and a noticeable gap between foreign investors' growing interest in Chinese stocks and their still-conservative equity allocations. Goldman Sachs kept rating at Overweight on the Chinese stock market, predicting that the scale of southbound funds will reach US$160 billion for the year, and reinforcing its view of "focusing on individual stocks rather than the market". The broker reiterated its optimism for leading Chinese private enterprises and shareholder return themes, with its top 10 favored companies including TENCENT (00700.HK), BABA-W (09988.HK)(BABA.US), CATL (03750.HK)(300750.SZ), XIAOMI-W (01810.HK), BYD COMPANY (01211.HK), MEITUAN-W (03690.HK), NTES-S (09999.HK)(NTES.US), MIDEA GROUP (00300.HK), HENGRUI PHARMA (01276.HK)(600276.SH) and TRIP.COM-S (09961.HK)(TCOM.US). Goldman Sachs upgraded its ratings for the insurance and materials sectors to Overweight, while downgrading its ratings for the banking and real estate sectors to Marketweight. The broker also raised its 12-month target for the MSCI China Index from 85 to 90. AASTOCKS Financial News Website: www.aastocks.com |
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