Goldman Sachs: More Frequent State Buying of Chinese Stocks to Support Rebound

State buying of Chinese stocks has become more frequent and will support a rebound towards year-end, according to Goldman Sachs report.

The government has become more active in buying stocks since August to breathe life back into the flagging market.

Top 5 ETFs favored by the National Team surged 90 billion yuan in net subscriptions in August.

Direct state intervention in stocks may not be effective, as seen in 2015 meltdown despite buying by state entities.

Strategically, onshore Chinese stocks remain preferred over offshore ones due to lower sensitivity to overseas factors.