Global Banks Cautiously Optimistic for China Stock Rebound in 2023 on Valuations, Policy Support
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Global banks and asset managers cautiously optimistic about a rebound in China's A-share market this year due to attractive valuations and potential for earnings growth.
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Goldman Sachs projects 19% return for CSI 300 Index in 2023 based on expected 8-10% profit growth for Chinese companies.
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Valuations at lowest levels since 2018 with price-to-earnings ratio of CSI 300 Index at 10.5.
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Policymakers signaling commitment to supporting growth and stability, which could sustain corporate earnings momentum.
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Foreign investors still cautious, registering net outflows from A-shares year-to-date, though some see opportunities amid lingering uncertainties.