Goldman Sachs expects Chinese stocks to surge another 15%, the Yuan strengthens to the level of April 65, welcoming the opening of the country - important policy changes.
Yahoo Finance reported on January 9, 2566, citing Bloomberg, that Goldman Sachs Group Inc. said Chinese stocks could rise another 15% as the yuan strengthens to its April 2565 levels due to the reopening of the country and several key policy changes.
By Kinger Lao, a member of the strategist team, revealed that Goldman Sachs has increased the MSCI China Index target for the 12-month period from 70 to 80 when evaluating the small value and policy adjustments in many sectors, such as at Residential Internet governance and geopolitics
Moreover, Goldman Sachs forecasts that the yuan will rise to 6.5 yuan per dollar. per dollar by the end of the year This compares with the previous forecast of 6.9 yuan per dollar. This is supported by the positive outlook from the country's reopening.
“China appears well-positioned for the growth, policy and inflation cycle in the global context in 2566,” said Kinger Lau, adding that “the prevailing market backdrop leads us to believe that the downside risks of maintaining overweight Chinese stocks Short or short is higher than opening a long position.”
Chinese stocks started the new year with a bang. with investors returning to the market again As the country gradually Break free from strict Covid restrictions and open borders again. Regulatory risk reduction and support measures for the real estate sector provide further support.
Goldman has confidence in the Chinese stock market. As a growing group of Wall Street banks pinned their hopes for a brighter 2566 on the country's battered stocks, the MSCI China index rose 48% from its October low. which performs better than other countries around the world in the past two months
Meanwhile, Yuan purchases will also gain momentum in 2566 with strong stock inflows on renewed optimism. The overseas yuan surged past 6.8 yuan per dollar for the first time since August on Monday. Extending the year-to-date gain of 1.9% to 1.9%.
Reference: https://finance.yahoo.com/news/goldman-sees-china-stock-yuan-035916017.html
