Goldman Sachs: Chinese households' equity allocation remains low relative to its long-term potential.

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ME News, June 24 (UTC+8), a research report released recently by Goldman Sachs China Macroeconomic Team stated that the asset allocation of Chinese residents is in the early stage of a structural transformation. With the gradually weakening role of real estate in wealth accumulation and deposit rates remaining low, savings may progressively shift to a broader range of financial assets, with stocks and insurance expected to be the main beneficiaries in the medium term. "The allocation of Chinese residents to stocks is still low relative to its long-term potential," the Goldman Sachs report said. Currently, the proportion of stocks in residents' assets is less than 10%, indicating that there is significant room for further asset reallocation as residents gradually broaden their investment fields. Goldman Sachs also stated that, given the still cautious risk appetite of residents and the uneven distribution of financial wealth, this adjustment is unlikely to be linear or cover a wide range of people. Even so, if residents' confidence stabilizes and capital market returns are attractive, stocks may account for a larger share of new resident savings in the future. (Source: ODAILY)
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