Goldman Backs Chinese Stocks as Beijing Seen Easing on Crackdown
- Stability drive ahead of party congress to ease macro stress
- Upgrade follows similar recent moves by UBS and BlackRock
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Goldman Sachs Group turned more bullish on Chinese stocks, hit by a succession of regulatory shocks and a property debt crisis this year, as a softer approach by Beijing will ease pressure on the economy and improve poor valuations.
Goldman expects a better year for Chinese equities, with onshore and offshore stocks to return 16% and 13% in the next 12 months, respectively, it said in a report. It also upgraded offshore stocks to overweight after lowering them to market-weight in July.