Chinese stocks will gain in 2024: Goldman Sachs

November 24, 2023 10:07 AM AEDT | By Invezz
 Chinese stocks will gain in 2024: Goldman Sachs
Image source: Invezz

2023 is on course to mark the third straight annual loss for Chinese equities but a Goldman Sachs strategist is convinced that next year will be a different one.

Goldman Sachs’ view on Chinese equities

Kinger Lau forecasts a 12% gain for MSCI China and an even bigger 15% gain for CSI 300 in 2024 as earnings grow an estimated 10%. His outlook report for next year also reads:

An arguably bearish policy and/or geopolitical outlook is embedded in the suppressed valuations, pointing to a right-skewed return distribution if these concerns subside.

A moderate increase in valuations could help the Chinese stocks in 2024 as well, Lau added.

Watch here: https://www.youtube.com/embed/dQUFywkJkgY?feature=oembed

He’s positive on the onshore Chinese markets but recommends avoiding the region’s banks, real estate, and consumer services stocks.

Chinese stocks that are particularly attractive

Among sectors that he likes is tech hardware. He sees opportunity in artificial intelligence and new infrastructure as well for investors interest in gaining exposure to Chinese stocks.

Kinger Lau is also bullish on sectors that are key to the Beijing’s national development goals which include new energy vehicles, batteries, and renewable energy.

Also this week, analysts at Jefferies said Chinese tech giants like Alibaba Group Holding Ltd and Baidu Inc had significant hidden value.

China by far has the best FCF cover in Asia with a high net cash proportion of companies, indicating significant potential to boost shareholder returns.

The post Chinese stocks will gain in 2024: Goldman Sachs appeared first on Invezz


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.