Strategists at Goldman Sachs Group Inc. are forecasting a sustained rally in Chinese equities, driven by the optimism surrounding the nation's technological advancements. The emergence of DeepSeek is particularly fueling this positive sentiment, suggesting a strong future for China's tech sector.
Kinger Lau, along with his colleagues at Goldman Sachs, projects that the MSCI China Index will reach 85 within the next 12 months. This is an upgrade from their previous target of 75, indicating a potential 16% increase from Friday's closing figures. The index has already entered a bull market earlier this month, showcasing robust growth momentum.
In addition to the MSCI China Index, Goldman Sachs has also adjusted its expectations for the CSI 300 Index. The new target has been set at 4,700, up from the prior target of 4,600. This adjustment reflects the strategists' confidence in the enduring strength of Chinese equities, particularly as technological advancements continue to unfold.
These predictions underscore the growing investor confidence in China's market potential, particularly in the technology sector, as the country continues to make strides in innovation.
