Goldman Sachs: Chinese corporate profits expected to grow by 14% in 2026, boosting stock market performance.

Goldman Sachs analysts released a report pointing out that profits of Chinese companies may increase by 14% next year, and by 12% in 2027, which could help boost stock market performance. During the "hope-to-growth" cycle, there is a potential 10% valuation reassessment, analyst Kinger Lau stated in the report, reaffirming that Chinese stocks could rise by 38% by 2027. The growth in overseas revenue of listed companies is expected to drive the earnings of MSCI China Index components to increase by about 1.5% annually by 2030. The valuation of the Chinese AI technology ecosystem has been reevaluated, but considering China's potential for growth in capital expenditure and its focus on commercializing artificial intelligence, it still appears cheaper compared to the United States. Due to trade conditions being better than expected, export stocks are outperforming consumer stocks.