Goldman Sachs said it is expected that the MSCI China Index and the Shanghai and Shenzhen 300 Index will rise 20% and 12% respectively this year. There is still an overallocation of A shares and H shares in the Asian market. Goldman Sachs pointed out that stock earnings in 2026 are expected to be almost entirely driven by corporate profits. Profit growth is expected to accelerate from 4% in 2025 to 14% in 2026 and 2027, supported by artificial intelligence, overseas travel, and anti-domestic policies. It is estimated that the net purchase amount of southbound capital may reach 200 billion US dollars, which will reach a new high. On the sector side, it maintains an optimistic attitude towards artificial intelligence narratives and favors service consumption in the consumer sector. Focus on the materials sector in the cycle to maintain overallocation of insurance.

Goldman Sachs said it is expected that the MSCI China Index and the Shanghai and Shenzhen 300 Index will rise 20% and 12% respectively this year. There is still an overallocation of A shares and H shares in the Asian market. Goldman Sachs pointed out that stock earnings in 2026 are expected to be almost entirely driven by corporate profits. Profit growth is expected to accelerate from 4% in 2025 to 14% in 2026 and 2027, supported by artificial intelligence, overseas travel, and anti-domestic policies. It is estimated that the net purchase amount of southbound capital may reach 200 billion US dollars, which will reach a new high. On the sector side, it maintains an optimistic attitude towards artificial intelligence narratives and favors service consumption in the consumer sector. Focus on the materials sector in the cycle to maintain overallocation of insurance.