Goldman Sachs like yuan, China stocks higher - citing policy shifts, stocks low valuations<p>Goldman Sachs on China's currency and stock markets:</p><p>Chinese stocks may rally another 15%</p><ul><li>12-month index target for the MSCI China Index to 80 from 70</li><li>citing low valuations and multiple policy pivots in areas like housing, internet regulation and geopolitics</li><li>expects further <a href="https://www.forexlive.com/terms/e/earnings/" target="_blank" id="cd852b85-3a1d-45ed-8691-cef64b568bed_1" class="terms__main-term">earnings</a> upside for the nation's internet sector given a faster-than-expected reopening, macro recovery and normalizing of regulations</li></ul><p>USD/yuan seen rising to 6.5 by the end of 2023</p><p>From the report:</p><ul><li>"China looks well positioned across the growth, policy, and <a href="https://www.forexlive.com/terms/i/inflation/" target="_blank" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1" class="terms__secondary-term">inflation</a> cycles in a global context in 2023" </li></ul><ul><li>"The prevailing market backdrop leads us to believe that the downside risk of maintaining underweight or shorting Chinese stocks is meaningfully higher than going long"</li></ul>
This article was written by Eamonn Sheridan at www.forexlive.com.
Source: Goldman Sachs like yuan, China stocks higher - citing policy shifts, stocks low valuations (https://www.forexlive.com/news/goldman-sachs-like-yuan-china-stocks-higher-citing-policy-shifts-stocks-low-valuations-20230109/https://www.forexlive.com/news/goldman-sachs-like-yuan-china-stocks-higher-citing-policy-shifts-stocks-low-valuations-20230109/)
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