Goldman Sachs raised its target price for Chinese stocks on Monday, projecting that AI adoption could significantly boost earnings growth and attract up to $200 billion in inflows.
The investment bank increased its 12-month target for the CSI300 index (.CSI300) from 4,600 to 4,700, while also raising its MSCI China forecast from 75 to 85. The revision comes amid a strong rally in Chinese tech stocks, which last week recorded their best winning streak in over two years. The CSI300, a benchmark for blue-chip stocks, was last trading at 3,954, well below Goldman’s new target.
Investor confidence in China’s technology sector has been reinvigorated by DeepSeek’s AI breakthrough, which has positioned the Chinese firm as a competitive player against U.S. tech giants. Additionally, easing regulatory pressures and a thawing relationship between the Chinese government and major tech firms have contributed to renewed optimism.
Goldman’s revised outlook aligns with a broader trend of increased global interest in China’s AI and tech sectors, despite lingering concerns over economic recovery and geopolitical tensions. While some investors remain cautious, analysts suggest that AI-driven growth could help sustain market momentum in the coming months.
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