Goldman Sachs Says There’s No China Stock Bubble, Sees Rally
An investor observes electronic board at a stock exchange hall on July 7, 2015 in Shenyang, Liaoning Province of China.
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China’s biggest stock-market rout since 1992 has done nothing to erode the bullish outlook of Goldman Sachs Group Inc.
Kinger Lau, the bank’s China strategist in Hong Kong, predicts the large-cap CSI 300 Index will rally 27 percent from Tuesday’s close over the next 12 months as government support measures boost investor confidence and monetary easing spurs economic growth. Leveraged positions aren’t big enough to trigger a market collapse, Lau says, and valuations have room to climb.