(Bloomberg) — Goldman Sachs Group Inc. strategists expect the selloff in Chinese stocks since late January to reverse as the nation’s economic reopening delivers windfall profits for businesses.

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Goldman Sachs see potential for the MSCI China Index to reach 85 by the end of 2023, an increase of about 24% from current levels, according to a note Monday from strategists including Kinger Lau.

“The principal theme in the stock market will gradually shift from reopening to recovery, with the driver of the potential gains likely rotating from multiple expansion to earnings growth/delivery,” the strategists said.

“The growth impulse should be heavily tilted towards the consumer economy, where services sector is still operating significantly below the 2019 pre-pandemic levels,” they added.

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