Goldman Sachs(US:GS) Jin Shi Shu Ju·2025-08-19 05:37Group 1 - Hedge funds are buying Chinese stocks at the fastest pace since the end of June, driven by long positions and some short covering, with a ratio of 1.9 to 1 [1] - Individual stocks and macro products, based on trends in inflation, GDP, geopolitical issues, and fiscal policy, accounted for 58% and 42% of total nominal net purchases, respectively [1] - China is the market with the highest net purchases on Goldman Sachs' prime brokerage platform as of August [1] Group 2 - Goldman Sachs' prime brokerage platform is currently overweight on China relative to the MSCI All Country World Index (ACWI) by +4.9%, ranking in the 41st percentile compared to last year and the 16th percentile compared to five years ago [1] - Chinese stocks represent 5.8% of total exposure and 7.3% of net exposure on Goldman Sachs' prime brokerage platform, ranking in the 94th and 45th percentiles respectively compared to last year, and the 48th and 21st percentiles compared to five years ago [1] Group 3 - Korean investors have significantly increased their trading volume in mainland China and Hong Kong stock markets, with cumulative trading amount reaching $5.514 billion by the end of July, surpassing last year's total [1] - The top ten net purchases of Chinese stocks by Korean investors are concentrated in leading companies in the fields of new energy vehicles, internet, artificial intelligence, and semiconductors [2] Group 4 - The average return of Chinese stock funds issued in South Korea from January to July is approximately 10.3%, driven by steady economic development in China [2] - In July alone, about 402.1 billion Korean won (approximately 2.08 billion RMB) of net inflow was recorded in Chinese stock funds [2] - Goldman Sachs raised the 12-month target for the MSCI China Index from 85 to 90 points, indicating an 11% upside potential from last Friday's closing price, supported by improved trade prospects and market liquidity [2]