Goldman Sachs(US:GS) Zheng Quan Shi Bao Wang·2025-10-22 06:04Core Insights - The MSCI China Index has rebounded 80% from its cycle low at the end of 2022, despite experiencing four significant pullbacks [1] - The Chinese stock market is expected to enter a more sustainable upward trend, with major indices projected to rise approximately 30% by the end of 2027, driven by a 12% growth in earnings and a further 5%-10% adjustment in valuations [1] Valuation Factors - Current index price-to-earnings (P/E) ratio is at a mid-cycle level, with low bond yields and a historical valuation discount of Chinese stocks compared to global markets [1] - The easing of Federal Reserve policies and the potential decline in China's (real) interest rates are favorable for stock valuations [1] Investment Strategy - The existing macro risks may lead to short-term market corrections, but as the bull market unfolds, investor sentiment should shift from "selling on highs" to "buying on lows" [1]