- Goldman Sachs lowered its rating on Hong Kong-traded China stocks due to low earnings growth and a potential consensus downgrade.
- The bank upgraded shares in India, citing the market’s strategic appeal and expecting mid-teens earnings growth over the next two years.
- Hong Kong-listed Chinese companies were downgraded to market-weight, while Hong Kong firms were downgraded to underweight.
- Goldman remains overweight on Chinese onshore shares, particularly in sectors related to China’s rebalancing toward higher productivity and self-sufficiency.
- India is seen as having the best structural growth prospects in the region, offering investors various alpha-generating themes.