Everybody buy the China dip, will it be the dip?

user
JacksNiffler
02-18

$Goldman Sachs (GS)$ has been publishing its views a bit more intensively lately, and it has also generated discussion

But to summarize, several big banks $ Bank of America (BAC)$ $ JPMorgan Chase (JPM)$ $ Morgan Stanley (MS)$ and others have similar views recently:

  1. Bullish on this wave of China asset revaluation brought about by Deepseek, with AI-related assets shifting from negative to positive valuations

  2. May encounter retracement resistance in the short term, but not a bad buying opportunity;

  3. Hong Kong and A are not progressing in the same way, A-share valuation is relatively a bit higher, and Hong Kong stocks and Chinese companies are more resilient (because of liquidity, shorting mechanism, etc.)

  4. Stimulus from the two sessions may favor other sectors and help the overall upside.

GS Target Position:

By the end of 2025, the $ MSCI China A50 Index Main 2502(MCAmain)$ Index is expected to rise 14%, with optimistic expectations of up to 28% , also raising the 12-month target level for the MSCI China Index from 75 to 85, which is expected to have 16% upside;

The 12-month target for the CSI 300 (399300)$ index has been raised from 4600 to 4700, with an expected upside of 19% in the next 12 months.Assuming that foreign investment in China's asset allocation from the current lows to the above valuation multiples, you can work backwards to calculate the incremental capital inflow: $ 200 billion!

But I wonder: If everyone thinks "there's a pullback" and "a pullback is a good buying opportunity", will there be a "pullback"?

图片

图片

AI + Policy Stimulus: Will Alibaba Head For $170?
Alibaba surged 4.59% and reached $147, a 52-week-high. Alibaba was gaining ground on Monday after the Chinese government said yesterday that it would implement a plan to boost consumer spending in the country. Will Alibaba fill last gap in November, 2021 and aim for $170? Will you chase the high?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • EVBullMusketeer
    02-19
    EVBullMusketeer
    Hurry up and dump the stock, I've already shorted it.
Leave a comment
1
7