Goldman Sees Limited Long-Term Damage From China’s Crackdowns

China’s recent regulatory tightening will cause limited damage to the country’s long-term economic growth and investment prospects, although financial markets will likely remain volatile in the short term, according to Goldman Sachs Group Inc.

The crackdown on sectors from technology to after-school tutoring was intended to make the economy more equitable and productive in the long term, rather than to target private companies broadly, the investment bank said in a report Monday, citing views from a number of experts including its China economist, Hui Shan, and Fred Hu, founder of Primavera Capital Ltd.