Goldman Sachs Began To Sing More A Shares And Again Raised China'S Stock Rating.

9 months after downgrading Chinese stocks, Goldman Sachs began to sing more A shares.

Timothy Moe, chief Asia equity strategist at Goldman Sachs, said in an interview: "although long-term structural concerns, and credit expansion and overcapacity still exist, in the short term, we think China is a good and sustainable trading target."

Timothy Moe said that for investors, before the end of this year, China is a very good market.

The reason is: "the logical foundation of our thinking is cyclical, and the economy will start to turn stronger in the fourth quarter, on the grounds of the recently announced easing policy.

Corporate earnings will also stabilise, and the absolute value will not be much, but it will start to stabilize, and valuations will remain moderate.

At present, the international fund company's reduction in China's stock market is close to the strongest level compared to the benchmark level in ten years.

At that time, it seemed to be in the opposite direction to raise the position, and Goldman Sachs's explanation of raising the Chinese stock rating seemed to have the same meaning.

In a September 12th report, the agency pointed out that the performance of China's stock market has lagged behind the Asia Pacific market other than Japan and other emerging markets in recent months.

Moreover, stock valuations are compared with regional and global valuation.

There is also a "meaningful discount".

For this reason, Goldman Sachs

The investment rating has been raised from "neutral" to "overweight".

The MSCI China Index has also increased its target price from 60.5 to 70, equivalent to about 9% of the rising space.

It should be noted that the MSCI China index does not only include shares in the Chinese A share market, but also includes B shares in China, Hongkong shares and H-share shares in mainland enterprises listed in Hongkong.

For specific investment strategies, Goldman advises investors to look for index weight stocks, which will benefit when tracking funds from these indices into the market passively.

Goldman Sachs is optimistic about technology stocks and American Depositary Receipts (ADRs) in the stocks, because the technology sector contributed most of the MSCI China Index during the year.

Goldman Sachs also believes that buying high-yield stocks in Hongkong can make profits.

Because of strong capital inflows in mainland and Hongkong banking stocks, Goldman Sachs favors mainland public utilities, Macao gambling stocks and real estate sectors in Hongkong and the mainland.

The first two times China's real economy is facing a serious downside risk, so the attractiveness of domestic assets has dropped sharply. The depreciation of the exchange rate has led to the accelerated outflow of capital and the stock market has fallen sharply.

And for the third time, China's economy has experienced a multi quarter recovery. Domestic assets have become relatively attractive. The depreciation of the exchange rate has not brought about significant outflow of capital, and the stock market has remained calm.

Looking at the four quarter, China's real economic return and financial product yield (representing the risk-free return rate provided by the virtual economy) are very important.

Once the stall down, it may become a super expected factor to break the lower limit of the A share market volatility, especially after the 2 quarter, most people have been relaxed about the exchange rate issue.