Goldman Sachs: Chinese stocks are likely to gain further support from a strengthening yuan | Forexlive

Chinese equities are likely to gain further support from a strengthening yuan, which has remained resilient despite ongoing trade tensions with the US, according to Goldman Sachs strategists.

They noted that for every 1% rise in the yuan against the US dollar, Chinese stocks could climb about 3%, driven by improved earnings prospects and increased foreign investment. Goldman recently revised its 12-month yuan forecast to 7 per dollar, up from 7.35.

• “Chinese stocks usually perform well when the yuan appreciates,”
• GS maintain an overweight view on the market.
• Sectors such as consumer discretionary, property, and brokerages are seen as key beneficiaries of a stronger currency.

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