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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Hong Kong – Senior leadership at Goldman Sachs Group has voiced optimism over the prospects of China’s equity market, despite lingering concerns over economic slowdown.
According to Bloomberg on September 3 (local time), Kevin Sneader, President of Goldman Sachs Asia Pacific (excluding Japan), said in an interview with Bloomberg TV: “We are hearing from clients and investors that sentiment toward Chinese equities is improving. While China still faces many challenges, this stock market rally appears to have sustainability.”
China’s equity market has shown resilience, with the CSI 300 Index climbing about 10% since late July, far outpacing the 1.6% gain in the MSCI All-Country World Index over the same period. Analysts attribute the rally to expectations for growth recovery driven by advancements in artificial intelligence (AI) and government-led capacity reduction measures.
Last week, Goldman Sachs strategists including Kinger Lau raised their year-end target for the CSI 300, citing undervalued valuations, high single-digit earnings growth prospects, rising retail investor participation, and the potential for asset reallocation.
Sneader highlighted that hedge fund inflows into Chinese equities are improving, but emphasized that domestic retail investors remain the key driving force. With an estimated USD 23 trillion (KRW 32,036 trillion) in cash holdings, Chinese retail investors are expected to play a pivotal role in sustaining the rally.
He added, however, that long-term investors are still waiting for more clarity, particularly regarding potential large-scale economic stimulus measures from Beijing.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
