Goldman Sachs is bullish on China and South Korea’s equities markets, expecting that they would outperform in 2023 as Beijing relaxes its Covid-Zero policy and the global environment improves.
Analysts at Goldman Sachs predicted that the MSCI China benchmark and the CSI 300 Index will both increase by 16% over the following 12 months, the highest gains in the region. Additionally, both South Korea and Hong Kong were upgraded from neutral to overweight.
“Regional equity leadership may shift north after Asean and India strength in 2022 as China markets rebound and Korea anticipates recovery,” the analysts said.
They suggested that the second quarter of 2023 could be a turning moment for Asian stock markets as the dollar reaches its peak and the Federal Reserve begins to shift monetary policy.
Some money managers feel the worst is gone for Chinese markets due to loosened Covid restrictions and developer funding.