Goldman Sachs: The fall in the Chinese stock market, which began in late January, will soon end, and shares could jump by about a quarter from the current level by the end of the year, analysts at the American bank Goldman Sachs predicted.
According to Bloomberg’s team of economists, the MSCI China Index could end 2023 at 85 points, which is about 24% higher.
“The most important factor for the stock market will gradually become not the opening of the economy, but its recovery, and the main growth driver will be the improvement in the profits of Chinese companies,” experts believe. Recovered to pre-pandemic levels.
At the same time, they note that investors will want to see concrete signals of improvement in fundamental indicators. Therefore, they recommend that they closely monitor macroeconomic statistics for January-February and company reports and prepare for the March National People’s Congress.
The Hong Kong Hang Seng index, fell to lows at the end of October, then soared one and a half times. However, the rally stopped at the end of January, and last week the indicator entered a correction phase, losing more than 10% from the local maximum. On Monday, the index adds 0.93%.