Goldman Sachs to Investors: China up by 19% in 2014

Goldman Sachs to Investors: China up by 19% in 2014 (YahooFinance)

Goldman Sachs’ analysts are projecting that Chinese stocks — as represented by the Hang Seng China Enterprises Index — will rise by 19 percent in the next year. This index tracks businesses listed on the Hong Kong exchange and available to foreigners for investment. This estimate flies in the face of recent performance as the Index, and Chinese equities as a whole, have underperformed over the last couple of years. So why the 180 degree turn in 2014? According to Goldman analyst Noah Weisberger, Asian-focused funds are “significantly underweight,” which “further suggests to us that very little China upside has been priced.” In other words, Goldman thinks economic growth and undervalued shares will propel the rally. Is that enough for you to drink from the Chinese font in 2014?

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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