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

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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

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

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

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

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

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

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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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