From Goldman Sachs: 2024-07-11 12:30:00

China’s equity markets show signs of a slow recovery post-lunar new year, with a boost in confidence. Despite challenges like the property sector issues and geopolitical concerns, policymakers are implementing measures for sustained recovery. Goldman Sachs experts discuss China’s economic outlook. GDP growth surpassed expectations in Q1 2024, hitting 5.3% YoY. Positive trends in fixed asset investment, industrial production, and services offset a slowdown in retail sales. Policies like equipment renewals and trade-in incentives aim to stimulate demand. Government reforms support market development and investor protection in China. “Nine Measures” guidelines focus on IPO rules, disclosure improvements, and tech advancement. Capital markets in China see opportunities in advanced manufacturing, technology innovation, resilient consumption, and high-yield dividend players. Risks include internal challenges like the property market downturn and geopolitical tensions with the US. Despite risks, a positive outlook on Chinese equities emerges with policy response, innovation, and reforms. Earnings rebound and low valuations offer an attractive entry point for investors.



Read more at Goldman Sachs: Will the rebound in Chinese stocks continue?