Overseas interest in China’s stock market has rebounded to a four-year high and more fundamental-driven gains are expected, according to a new report from Goldman Sachs.
Goldman Sachs also expects the widespread use of artificial intelligence to boost its China earnings per share forecast by 2.5 percent per year over the next decade, with potential portfolio inflows of more than $200 billion.
Morgan Chase & Co. also raised its outlook for Chinese stocks, with strategists including Wendy Liu raising their bearish benchmark bullish scenario targets for the MSCI China index to 708089 from 586776 in a report on Wednesday.
At the same time, Belaid, fidelity and others plan to expand their operations in China and increase their holdings in consumer and high-dividend assets. Deutsche Bank predicts that China’s increasing competitiveness in the global industrial chain will push A-shares and Hong Kong stocks higher. A number of institutions said that with the significant improvement in market sentiment, including strong market performance, the promotion of emerging technologies, an improved policy environment and changes in the pattern of global capital flows, at present, positive factors are still accumulating in the a-share market, and future long-term yield performance can be expected.