Goldman Sachs Predicts 30% Growth in Chinese Stocks by 2027

2025-10-22 economy

Beijing, Wednesday, 22 October 2025.
Goldman Sachs forecasts a significant 30% increase in Chinese stocks by 2027, driven by supportive policies, rising profits, and robust market flows, despite global uncertainties.

China’s Bull Market: An Overview

Goldman Sachs has projected a 30% increase in Chinese stocks by the end of 2027. This prediction is based on several key factors, including favorable government policies, rising corporate earnings, and increasing investor optimism [1][2]. The investment bank’s positive outlook arrives at a time when global economic uncertainties are affecting market sentiment, making China an attractive investment destination [3].

Drivers of Growth

The expected growth in China’s stock market is underpinned by a mix of policy support and economic fundamentals. Pro-market policies enacted by the Chinese government aim to stabilize and gradually boost the market, ensuring a controlled ascent rather than speculative volatility [1][4]. Additionally, corporate earnings are anticipated to rise, driven by advancements in sectors like artificial intelligence and technology, which continue to attract significant capital inflows [5].

Global Economic Context

Despite ongoing economic tensions between China and the United States, the Chinese market remains resilient. The People’s Bank of China has adopted a more cautious tone, indicating awareness of potential macroeconomic challenges [6]. Nonetheless, Chinese companies are increasingly looking to expand their presence overseas, leveraging cost advantages and a weaker yuan to boost exports [7]. This strategy not only diversifies revenue streams but also mitigates risks associated with domestic economic slowdowns.

Implications for Investors

For investors, the projected growth of China’s stock market presents a compelling opportunity. Goldman Sachs suggests adopting a ‘buy-on-dip’ strategy, taking advantage of temporary market corrections to accumulate shares [5]. As China’s economy continues to transition from a manufacturing-based model to one focused on technology and services, investors are encouraged to explore long-term growth potentials in sectors poised for global expansion [8].

Sources

Goldman Sachs China stocks