Goldman Sachs like yuan, China stocks higher – citing policy shifts, stocks low valuations | Forexlive

Goldman Sachs on China’s currency and stock markets:

Chinese stocks may rally another 15%

• 12-month index target for the MSCI China Index to 80 from 70
• citing low valuations and multiple policy pivots in areas like housing, internet regulation and geopolitics
• expects further earnings upside for the nation’s internet sector given a faster-than-expected reopening, macro recovery and normalizing of regulations

USD/yuan seen rising to 6.5 by the end of 2023

From the report:

• “China looks well positioned across the growth, policy, and inflation cycles in a global context in 2023”

• “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”