Investing in China getting challenging: Goldman Sachs

Investing in China getting challenging: Goldman Sachs

Investment in the Chinese market is growing and becoming challenging for investors. However, it is not uninvestable for traders, said Timothy Moe from Goldman Sachs. 

He stated that there were hosts of issues and problems faced by China. However, making a sweeping statement that China is uninvestable won’t do any good. Moe is the chief equity strategist of the Asia Pacific region. 

He added that it was too far overreaching and was missing a lot of specificities that were required to be invested in China. 

The narrative did not deem fit on the entire Chinese stock market, said Moe. He added that some policies served as a tailwind for a few sectors. 

He gave the example of hard technology areas like semiconductors, where Beijing has already offered to become self-sufficient. 

In March 2021,  the largest semiconductor manufacturing international corporation had announced that in Shenzhen, it was building a USD 2.35 billion factory. It is one of the significant technology hubs in the nation. 

Other sectors that have been benefitted from the policy are the new energy space. It was espoused in the fourteenth five-year plan in Beijing. 

The regulatory crackdown in China has weighed heavily on the Chinese stock market recently.  

Notably, during Friday’s close, the CSI 300 index was down by 5 per cent. It tracks the biggest mainland listed stocks. However, on the other side, its competitors like Nikkei225 rose by 5 per cent during the same time. 

In recent days, S&P500 and the Dow Jones Industrial Average have sailed to record highs. They have drifted on the back of strong earnings.

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