Goldman Sachs Group Inc. strategists are optimistic about the performance of Chinese stocks in the two to three months following the US presidential election. They anticipate a bullish sentiment towards China equities, despite potential volatility if former President Donald Trump secures a win.
Recent observations indicate that Chinese stocks have shown resilience, as they did not experience a sell-off in the weeks leading up to the election amid concerns regarding Trump's potential impact. This stability suggests a strong underlying confidence in the Chinese market, according to a trading desk note released on Wednesday.
The firm believes that risk sentiment towards China is likely to improve significantly in the post-election period, positioning Chinese equities favorably for investors looking to capitalize on potential gains.