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Goldman Affirms Bullish China Stocks Call in Face of Taiwan Rift

  • Sees 24% potential returns in Chinese shares in next 12 months
  • Volatility may rise as US-China tensions to remain elevated
Updated on

Strategists at Goldman Sachs Group Inc. are staying with their bullish call on Chinese equities even as they warn that geopolitical risks may fuel more volatility in the near term.

The outlook for China’s stocks is supported by prospects of an economic recovery in the third quarter, contained inflation and easing policy in the region and globally, strategists including Kinger Lau wrote in a note Thursday. The risk-reward profile is turning favorable again, barring a further worsening in geopolitical tensions, they added.