Core Viewpoint - The easing of trade tensions has led to a market rebound, prompting Goldman Sachs to raise its target prices for Chinese stocks twice within a week, returning to levels predicted before April 2 [1][2]. Group 1: Market Performance - As of May 14, the Chinese stock market has fully recovered the losses incurred since April 2, with the MSCI China, CSI 300, and Hang Seng Tech indices rising by 2-4% from their early April highs [1][4]. - The reduction of tariffs has contributed to this recovery, with a total of 91% of the tariffs being lifted and a suspension of 24% of retaliatory tariffs, exceeding market expectations [4]. Group 2: Goldman Sachs Adjustments - Goldman Sachs has maintained an overweight rating on Chinese stocks, adjusting the 12-month target prices for the MSCI China and CSI 300 indices to 84 and 4600 points, respectively, indicating potential upside of 11% and 17% [1][5]. - The firm has revised its GDP growth forecasts for both the U.S. and China, reflecting a more optimistic economic outlook [6]. Group 3: Sector Performance - The hardware technology, industrial, and consumer sectors have led the market rally, while healthcare, U.S. exporters, and government spending-related stocks have lagged [4]. - Goldman Sachs suggests focusing on sectors benefiting from consumption recovery and digital transformation, including quality regional banks and leading real estate companies [5].