The gauge surpassed that target in early October but has retreated since. It’s on track to decline for its first month in six after a rally propelled by artificial intelligence optimism cooled. Investors are now closely watching this month’s Fourth Plenum meeting and anticipated talks between US President Donald Trump and China’s President Xi Jinping for clues on the stock market’s outlook.
Further demand-side stimulus, profit growth driven partly by AI development and robust flows from both domestic and foreign investors are among factors helping to boost Chinese shares, according to Goldman. Earnings may increase 12% in the next three years, while equity multiples could jump 5%-10% from current levels, the broker added.
Still, a cyclical macro slowdown in the fourth quarter and resurgent tariff risks “could be taken as profit-taking excuses,” the strategists wrote. Unless those issues intensify, “we would stay invested and accumulate on corrections.”