Goldman Sachs Predicts China Stocks to Soar Through 2026, Driven by AI

• Goldman Sachs forecasts a continued bullish trend for China's stock market through 2026, though at a slightly slower pace than 2025.
• The MSCI China Index is projected to rise by 20% to 100 by end of 2026, while the CSI 300 Index could increase by 12% to 5200.
• Key drivers for earnings growth include artificial intelligence, 'Going Global' initiatives, and anti-involution policies.
• Investor enthusiasm is high, with mainland Chinese investors potentially making record net purchases of Hong Kong-listed shares ($200 billion).
• Goldman Sachs raised its corporate profit growth forecast to 14% for 2026 and 2027, up from 4% in 2025.

Why It Matters: Goldman Sachs remains highly optimistic about China's stock market, driven by AI and strong earnings.