Goldman Sachs Forecasts China Stocks to Rebound with First Annual Gain in 2024

Goldman Sachs predicts that Chinese stocks may experience their first annual gain in four years in 2024, as the policy environment becomes more supportive. The investment bank highlights sectors such as mass consumer markets and technology, media, and telecom as potential winners in China's ongoing rebalancing. They expect the MSCI China and CSI 300 indexes to rise 12% and 15% respectively, driven by estimated earnings growth of around 10% and moderate valuation gains. Goldman Sachs also identifies opportunities in sectors like artificial intelligence and new infrastructure, while downgrading sectors such as consumer services and insurance due to exposure to the Chinese property crisis. They believe the Chinese housing deleveraging process will continue to impact economic growth in the coming years, necessitating policy support.