Goldman Sachs cut target prices of MSCI China Index, CSI 300 Index
STOCKS VIEWS & ANALYSIS
Goldman Sachs cut target prices of MSCI China Index, CSI 300 Index
STOCKS VIEWS & ANALYSIS

Goldman Sachs cut target prices of MSCI China Index, CSI 300 Index

 

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The MSCI China Index rallied a total of 59% from the low points in late October 2022 to the highs in January 2023, after which the index has retreated by 23% from the peak, Goldman Sachs said in a report. 

The performance of the Chinese market has evidently lagged behind major developed and emerging markets year to date, in wake of comparatively less constructive growth, inflation and policy outlooks, the bank said.

Goldman Sachs reiterated upbeat view on Chinese equities, and maintained the rating at Overweight. It still sees an appealing risk/ reward setup for the segment, fully aware of the cyclical and structural growth and liquidity headwinds facing China. 

Goldman cut the target price of MSCI China Index to 70 from 80, lowered the forecast of PE ratio in the next 12 months to 10.7 times from 11.5 times. It also lowered the target price of blue-chip CSI 300 index to 4,500 from 4,700.