According to Goldman Sachs data, A shares and H shares achieved returns of about 16% and 29% respectively during the year. Since their respective cycle lows at the end of 2022, the cumulative rebound has expanded to 30% and 75%. Goldman Sachs predicts in its latest report that the Chinese stock market will still have room to rise 38% by the end of 2027. This judgment is mainly based on three factors: first, the gradual recovery of corporate profits, which are expected to grow at 14% and 12% in 2026 and 2027, respectively; second, valuations have the potential for a moderate recovery of about 10%; third, the drive for market returns is shifting from previous valuation repairs to profit realization and moderate price-earnings ratio expansion. At the capital level, domestic capital, which previously had low stock asset allocation, is entering the market at an accelerated pace. According to Goldman Sachs data, the southbound capital inflow has continued since this year. The annualized scale has reached 180 billion US dollars, far exceeding the 104 billion US dollars in 2024, setting a historical record. At the same time, with the support of excess savings and moderate leverage, individual investors are also increasing stock allocations.

According to Goldman Sachs data, A shares and H shares achieved returns of about 16% and 29% respectively during the year. Since their respective cycle lows at the end of 2022, the cumulative rebound has expanded to 30% and 75%. Goldman Sachs predicts in its latest report that the Chinese stock market will still have room to rise 38% by the end of 2027. This judgment is mainly based on three factors: first, the gradual recovery of corporate profits, which are expected to grow at 14% and 12% in 2026 and 2027, respectively; second, valuations have the potential for a moderate recovery of about 10%; third, the drive for market returns is shifting from previous valuation repairs to profit realization and moderate price-earnings ratio expansion. At the capital level, domestic capital, which previously had low stock asset allocation, is entering the market at an accelerated pace. According to Goldman Sachs data, the southbound capital inflow has continued since this year. The annualized scale has reached 180 billion US dollars, far exceeding the 104 billion US dollars in 2024, setting a historical record. At the same time, with the support of excess savings and moderate leverage, individual investors are also increasing stock allocations.