Securities Daily | Goldman Sachs: Global Investors' Interest in Chinese Equities Has Risen to a Multi-Year High

Source: www.zqrb.cn

According to a report by Securities Daily (Reporter Mao Yirong), Liu Jinjing, Chief China Equity Strategist at Goldman Sachs, stated on March 24 that international investors' interest in Chinese equities may have risen to a multi-year high. At that time, only about 10% of surveyed clients are not willing to invest Chinese equities for the time being, a significant improvement from approximately 40% two years ago.

Amid escalating global tensions and surging energy prices, Liu noted that Goldman Sachs maintains its overweight recommendation on Chinese equities (A-shares and Hong Kong stocks), with A-shares offering higher Sharpe ratios in the near term.

In Liu's view, there remains a significant gap between overseas investors' interest in Chinese equities and their actual allocations, indicating room for further improvement. Actual position data shows that international investors remain relatively conservative in their allocation to Chinese equities, with hedge funds' net exposure to China hovering around cyclical averages. Long-duration asset managers, particularly sovereign wealth funds and pension funds from emerging markets and Belt and Road countries, have shown strong interest in the Chinese stock market. For example, amid the recovery of Hong Kong's IPO market, the participation rate of foreign cornerstone investors has reached a cyclical high of 25%.

Liu also noted that China is an indispensable part of the global AI landscape, accounting for 10% and 16% of global AI-related market capitalization and revenue, respectively. However, global mutual funds remain significantly underweight, with Chinese AI stocks accounting for only 1.2% of their global technology equity holdings as of January 2026.

According to Liu, China holds competitive and comparative advantages in the global AI supply chain, particularly in infrastructure, power, and semiconductors. "Chinese AI is not a bubble. We estimate that the potential economic benefits generated by AI—through efficiency gains and new profit creation—could be 50% to 100% higher than what is currently reflected in AI stock valuations." At the same time, Goldman Sachs continues to favor companies that place a high priority on and are committed to delivering shareholder returns. It expects that cash returns by Chinese listed companies may reach a new high of approximately RMB 4 trillion in 2026.

(Editor: Guo Zhichen)