Goldman Sachs joins the China-equity bull party
Goldman Sachs is joining the rush on Chinese shares, becoming the latest major brokerage to upgrade the market, thanks to mounting evidence of strength in the largest Asian economy .
The bank's strategists are now overweight on Chinese stocks, with their 12-month forecast for the MSCI China Index boosted to 73 points from 68, according to a note dated Monday from Goldman analysts. That represents a gain of almost 25% for 2017.
The MSCI China gauge has already climbed 11% this year, outpacing the wider Asian region and the 5.6% advance in global stocks. Improving economic data have burnished the appeal of Chinese assets since Goldman lowered China to marketweight on Dec 1.
Analysts anticipate that policy measures will continue to be supportive given the twice-a-decade Communist Party conclave later this year, when a reshuffle among senior ranks is expected.
The bank's strategists are now overweight on Chinese stocks, with their 12-month forecast for the MSCI China Index boosted to 73 points from 68, according to a note dated Monday from Goldman analysts. That represents a gain of almost 25% for 2017.The MSCI China gauge has already climbed 11% this year, outpacing the wider Asian region and the 5.6% advance in global stocks. Improving economic data have burnished the appeal of Chinese assets since Goldman lowered China to marketweight on Dec 1.
Analysts anticipate that policy measures will continue to be supportive given the twice-a-decade Communist Party conclave later this year, when a reshuffle among senior ranks is expected.
