Goldman Sachs has raised its outlook on Chinese equities, citing artificial intelligence as a key driver of future earnings growth. With AI breakthroughs reigniting investor confidence, the firm estimates that China’s stock market could attract an influx of $200 billion.
Chinese tech stocks have been on an impressive rally, marking their best winning streak in over two years. The momentum gained further traction following DeepSeek’s AI innovation, which reaffirmed China’s growing strength in advanced technology. In response to this surge, Goldman Sachs revised its 12-month target for the CSI300 index to 4,700 from 4,600 and lifted its MSCI China target from 75 to 85. The blue-chip CSI300 index, currently at 3,954, reflects the market’s positive trajectory amid renewed enthusiasm for AI-driven growth.
Goldman Sachs’ upgrade underscores the transformative potential of AI in China’s financial markets. As adoption accelerates, the sector stands to benefit from significant capital inflows, reinforcing the country’s position as a leader in technology-driven economic expansion.
Fidelity China Special Situations PLC (LON:FCSS), the UK’s largest China Investment Trust, capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.
