China Stocks Poised for a Rebound? HSBC and Goldman Predict Up to 20% Growth

TradingKey - HSBC and Goldman Sachs are bullish on Chinese Stocks despite the ongoing plunge, with the MSCI China Index down nearly 10%.

Goldman Sachs strategists are maintaining their bullish stance on Chinese stocks, even as the MSCI China Index entered a bear market last week and the CSI 300 Index dropped over 5% during the first seven trading sessions of 2025.

According to a report on Sunday, Jingjie Liu and his colleagues at Goldman Sachs remain overweight on Chinese domestic and foreign shares, projecting a 20% rise in the benchmark index by the end of the year. They stated that sentiment and the liquidity environment might improve by the end of Q1 2025, driven by better tariffs and clearer policies.

Goldman advises investors to buy government consumer proxies, emerging market exporters, and select technology and infrastructure stocks. Additionally, it maintains an overweight rating on online retail, media, and healthcare stocks, while upgrading consumer services stocks to overweight.

Similarly, HSBC Holdings is optimistic about Hong Kong-listed Chinese stocks, citing "favorable policy rhetoric" and a more positive economic growth outlook for mainland China.

Last November, Goldman made a similar prediction, but the MSCI China Index has since declined by nearly 10%.