Goldman Sachs: The risk-reward ratio in the Chinese market is attractive, and AI is expected to boost corporate profit growth to double digits.

Against the backdrop of rising global geopolitical risks and intense volatility in capital markets, the Chinese market is gradually becoming an important safe-haven market in Asia. High Goldman Sachs Asia Pacific Chief Equity Strategist Timothy Moe recently stated in an interview that the current downside risk of the Chinese market is relatively limited, while there is still room for gains, making the risk-reward profile of the Chinese market attractive. The market’s defensive features are driven by thorough valuation adjustments earlier, lighter foreign institutional holdings, and forward-looking strategic planning related to energy security. At the same time, it is expected that AI will boost corporate profits by improving productivity, reducing labor costs, and creating new business opportunities, among other ways, with the earnings growth rate of MSCI China Index constituents and A-shares overall potentially reaching double digits. Looking ahead, Timothy Moe believes that the HALO (heavy assets, low turnover) investment theme has lasting power and is likely to become an important allocation direction for capital. (China Securities Journal)