Banking giant Goldman Sachs is reportedly turning bullish on ten China-based companies.
Goldman Sachs says in a note to investors that the “Prominent 10” companies in China may be the country’s answer to the “Magnificent 7” companies in the US, reports Investopedia.
Says Goldman Sachs’ analysts,
“[The ten companies] embody the theme of AI/Tech development, self-sufficiency, ‘Going Global,’ services and new forms of consumption and China’s improving shareholder returns.”
The bank’s analysts say that a favorable regulatory environment and artificial intelligence investments may boost the earnings of the ten public-owned enterprises (POEs) by 13% in each of the next two years.
The companies include the gaming and multimedia giant Tencent, e-commerce firm Alibaba, smartphone maker Xiaomi, EV maker BYD, shopping platform Meituan, online gaming firm NetEase, home appliance maker Midea, pharmaceutical company Hengrui, online travel agency Trip.com and sports equipment company ANTA.
The Magnificent Seven companies include Tesla, Meta, Alphabet, Amazon, Apple, Microsoft and Nvidia.
Goldman Sachs’ bullish outlook also factors in the Chinese equity market’s relative segmentation and modest valuations.
Another consideration by the bank’s analysts is the Chinese government’s recent move to increase support for the private economy, as well as updated regulations to make mergers and acquisitions easier.
Say the bank’s analysts,
“All these should help revitalize POEs’ investment appetite (animal spirits), thereby supporting their organic and acquisitive growth down the road.”
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The post Goldman Sachs Flips Bullish on Ten Stocks – Bank Says These Companies Could Be China’s ‘Magnificent 7’ appeared first on The Daily Hodl.
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