Goldman Cuts China Stock Targets on Renewed Property Concerns
- Move is second time in three months for Goldman to lower views
- Growth pressures have resulted in fresh profit downgrades
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Chinese stocks will settle in a lower trading range than previously expected until Beijing introduces more forceful policy responses to address the contagion risk from a property slump, according to Goldman Sachs Group Inc.
The Wall Street bank has cut its full-year earnings-per-share growth estimate for the MSCI China Index to 11% from 14%, and reduced the 12-month index target to 67 from 70, according to a Monday note by strategists including Kinger Lau. That new target implies a 13% gain from the gauge’s Friday close.