Goldman sees China stocks and yuan gains spread on policy changes

The brokerage raised its 12-month index target for the MSCI China Index to 80 from 70, citing low valuations and more than one policy shift

network regulation and geopolitics, strategists including Kinger Lau wrote in a Notice dated Monday. Separately, Goldman said it expects the yuan to rise to six

A consistent five for  the dollar at the end of 12 months compared with its previous estimate of 6.9 on optimism's reopening,

“China seems to be well placed in the boom, political and inflation cycles in a global context in 2023,” Lau's team wrote.

 "The current market environment leads us to believe that the downside threat of being underweight or shorting Chinese stocks is significantly.

Chinese stocks started the new year strongly, with investors pulling back on the market as the kingdom regularly exits strict Covid regulation

The relaxation of regulatory risks and the assistance measures for the asset area halt a new rise.

Goldman has been bullish on Chinese stocks as a growing chorus of Wall Avenue banks pin their hopes on a brighter 2023

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