Goldman’s Rubner Sees ‘Buy China’ Trade Playing After Election
- Politburo’s stimulus plans give Chinese shares an added boost
- Underweight China stocks is ‘largest consensus trade’: Rubner
Chinese stocks have been on a tear, with the Nasdaq Golden Dragon Index soaring 19% in the last four days, and the shares should be a key part of investors’ plans once the US election is over, according to Scott Rubner, managing director for global markets and tactical specialist at Goldman Sachs Group Inc.
US-listed China stocks extended their rally on Thursday after the nation’s Politburo announced plans for fiscal spending to stimulate consumption and rein in local government debt, as well as measures to stabilize the country’s troubled real estate market. The moves are part of a coordinated economic plan unveiled this week that includes handouts and subsidies as well as a broad policy package aimed at arresting a growth slowdown that has battered consumer confidence.