“We need to focus more on implementation and identify the right investment pockets, especially given the recent improvement in market indices,” Kinger Lau said in an interview in Hong Kong on Friday. “Investors should allocate to sectors that offer better risk and reward.”
In a research note on Wednesday, Goldman said Chinese equities have fully recovered from a 13 per cent loss incurred after US President Donald Trump unveiled sweeping tariffs on April 2. The MSCI China, CSI 300 and Hang Seng Tech Index were trading 2 to 4 per cent above their respective highs in early April.
Over the next 12 months, Goldman said Hong Kong’s H shares would rise around 12 per cent and mainland China’s A shares would increase about 17 per cent.
“It is still a good time to buy,” Lau said, though things could change as the US-China relationship develops.
Early last week, the US and China tentatively agreed to reduce the US’ additional tariff rates on Chinese goods to 30 per cent, along with Chinese duties on US imports to 10 per cent, on top of some earlier levies.
