Choosing between A-shares or Hong Kong stocks, Technology or non-Technology? Goldman Sachs' Research Reports respond to two major hot topics in investing in China.
① Currently, should investors continue investing in Hong Kong Stocks or shift to the A-share market? Should the focus be on the Technology Sector or shift to Consumer, Real Estate, and other non-Technology sectors? ② On Wednesday, Goldman Sachs' chief China Stocks strategist, Liu Jinjing, provided an analysis in his report.
"On the eve of April 2nd," the China strategy teams of Goldman Sachs and Morgan Stanley sang in unison about optimism.
Goldman Sachs stated that based on its investor research, investors remain calm regarding tariff concerns. It believes that China's AI narrative is seen as a game changer, expected to attract over 200 billion dollars in Inflow within the next decade. Morgan Stanley holds that the Chinese market is experiencing three solid Bullish factors: the first performance surprise in three and a half years, upward revisions in profit forecasts, and potential elimination of long-term discount in valuations.
Morgan Stanley has once again raised its target for the Chinese stock market, providing three main reasons.
Morgan Stanley has once again raised the Target Price for the China market, expecting an upside potential of 8%-9% for the Hang Seng Index, Hang Seng China Enterprises Index, MSCI China, and CSI 300 Index by the end of the year. The upgrade is based on three main reasons: the first earnings surprise in three and a half years, revisions to profit forecasts, and the potential for valuations to eliminate long-term discounts, moving closer to Emerging Markets levels.
CITIC SEC: What percentage should Hong Kong stocks account for in the allocation of Chinese stocks?
CITIC SEC released a Research Report stating that since the beginning of the year, Hong Kong stocks have entered a technical bull market, while A-shares are overall in fluctuation.
Hong Kong Stock Morning Report | US stock index closed higher while Chinese concept stocks fell, Morgan Stanley raised the target point for the Hang Seng Index.
① The results of the Saudi talks between the USA, Russia, and Ukraine have been disclosed, achieving a consensus on a ceasefire in the Black Sea. ② Consumer confidence in the USA further deteriorated in March. ③ The three main US stock indices rose on Tuesday, while China Concept Stocks declined. ④ Data shows that the US stock market is in a state of "Institutions fleeing, retail investors buying heavily." ⑤ According to sources, Trump is considering implementing a two-step tariff system on April 2. ⑥ Morgan Stanley has raised the year-end target point for the Hang Seng Index.
Hong Kong stock morning news | Trump sends signals about tariff exemptions; Xiaomi plans to raise approximately 42.5 billion Hong Kong dollars through a placement.
① Trump has stated that he will announce additional tariffs on Autos, timber, and chips; there may be exemptions for tariffs on multiple countries. ② Trump again calls for the Federal Reserve to lower interest rates; Federal Reserve's Bostic stated that the inflation rate will not return to 2% before early 2027. ③ The three major U.S. stock indices collectively rose, while China Concept Stocks remained lukewarm. ④ The central bank's MLF operation was adjusted to multiple price level bidding, marking a net injection after eight months.
