Goldman Sachs report recommends an overweight position in Chinese stocks, predicting annual gains of 15% to 20% for the Chinese stock market in 2026 and 2027.

PANews, January 5th - Goldman Sachs released a macro report today titled "China 2026 Outlook: Exploring New Drivers." The report recommends an overweight position in Chinese equities for 2026. The report analyzes that in 2026, China's exports have structural upside potential; investment is expected to rebound with policy support; and policies place greater emphasis on service consumption and encourage increased holidays and paid leave. The report also notes that the "15th Five-Year Plan" prioritizes "building a modern industrial system" and "accelerating high-level technological self-reliance," suggesting that China's exports and current account are likely to remain strong in the coming years. Goldman Sachs' equity strategy team previously recommended an overweight position in A-shares and Hong Kong stocks across the Asia-Pacific region, predicting that the Chinese stock market will rise by 15% to 20% annually in 2026 and 2027. Drivers of accelerating earnings growth include the application of artificial intelligence, the "going global" trend, and "anti-involution" policies. Furthermore, the current valuation of the Chinese stock market is significantly discounted compared to its global peers.