Goldman Sachs has issued a macro report titled "China 2026 Outlook: Exploring New Drivers," recommending an overweight position in Chinese equities for 2026. The report forecasts annual gains of 15% to 20% for the Chinese stock market in 2026 and 2027, driven by structural export growth, policy-supported investment rebounds, and increased emphasis on service consumption.
The report highlights China's "15th Five-Year Plan," which focuses on building a modern industrial system and enhancing technological self-reliance, as key factors supporting strong exports and a robust current account. Additionally, the application of artificial intelligence, the "going global" trend, and "anti-involution" policies are expected to accelerate earnings growth. Goldman Sachs notes that the current valuation of the Chinese stock market is significantly discounted compared to global peers.
Goldman Sachs Recommends Overweight Position in Chinese Stocks for 2026
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