Goldman Sachs has upgraded its forecast on Chinese markets, citing a potential artificial-intelligence game changer that could attract $200 billion in investment this year. However, the firm advises investors not to rush in, as sustainable gains will require fiscal stimulus.
The CSI 300 index, which tracks China’s largest publicly traded companies, was raised by Goldman Sachs strategists, indicating growing confidence in the market’s potential. The upgrade is attributed to advancements in artificial intelligence and its ability to attract significant investment.
Despite the upbeat outlook, Goldman warns that investors should not anticipate immediate returns without considering the need for fiscal stimulus. This suggests that policymakers will be required to provide additional support to drive sustainable growth.
Investors are advised to exercise caution when approaching China markets, weighing both the potential benefits of AI-driven investments and the necessity of government-led fiscal stimulus to ensure long-term gains.
Source: https://www.marketwatch.com/story/goldman-says-ai-could-be-a-200-billion-game-changer-for-china-markets-but-heres-why-investors-shouldnt-rush-in-3882f821