Goldman Sachs says China is not ‘uninvestable’
Timothy Moe from Goldman Sachs says there are opportunities on China’s stock market despite a difficult investment background.
“There are certainly a host of challenges that China is facing right now — but we would push back quite vigorously on the sweeping statement that China is ‘uninvestable,'” Moe, chief Asia-Pacific equity strategist and co-head of Asia macro research at the investment banking giant, told CNBC’s “Squawk Box Asia” on Friday.
He stated that the statement was too general and misses much of what is required to make investments in China.
Moe explained that the narrative is not universally applicable to all Chinese stocks markets. He also said that in certain cases, policy can be a tailwind for specific sectors.
He mentioned the “hard technology” areas such as semiconductors where Beijing has signaled its intent to self-sufficiency.
China’s biggest and most significant chipmaker was founded in March Semiconductor Manufacturing International Corporation announced it was building a $2.35 billion factory in Shenzhen — a major technology hub in the country.
The policy has also benefited other sectors, such as the “espoused new energy” sector. Beijing’s 14th five-year planMoe agreed. Chinese President was elected last year Xi JinpingThe country has announced that it will begin reducing its carbon emissions by 2030. This is in line with its goal of becoming carbon neutral by 2060.
Moe acknowledged that China’s current investment climate is “easier” but said “these parts have done well.”
Chinese stocks have suffered from concerns over a Beijing regulatory crackdown.
Friday’s close saw the CSI 300 Index, which monitors mainland-listed stocks drop by almost 5%. Comparatively, major regional indexes like Japan’s are down nearly 5%. Nikkei 225The same time, the stock market surged by 5%.
— CNBC’s Yen Nee Lee contributed to this report.