China Weekly Kickstart

Goldman Sachs has shifted its China equity strategy to Marketweight for MSCI China (H-shares) while retaining an Overweight stance on A-shares. The revision reflects downgraded earnings growth forecasts and a more cautious outlook on index performance for the next 12 months.

Key Takeaways

• 1.The firm moderated its view on MSCI China (MXCN) to Marketweight while remaining Overweight on A-shares.
• 2.MSCI China earnings growth forecasts for 2026/2027 were revised down to 8% and 12%, respectively.
• 3.Manufacturing PMIs showed signs of weakness in May, while non-manufacturing and services sectors saw improvement.

Table of Contents

• Performance
• Earnings and valuations
• Flows
• Key reports
• Policies and news
• Charts of the Week: Market Update
• Charts of the Week: 1Q26 Earnings Tracker
• Charts of the Week: Hedge Fund Positioning
• Charts of the Week: Proprietary Models and Barometers
• Goldman Sachs' China strategy and economic view at a glance
• Macro indicators summary
• Performance snapshot: Global markets, commodities, FX and rates
• Weekly performance summary
• Sector performance
• Relative performance of offshore China sectors
• Relative performance of onshore China sectors
• Earnings momentum and revisions
• China valuations
• Sector valuations
• Regional valuations
• Stock Connect weekly flows
• Style investing monitor (China Offshore)
• Style investing monitor (China Onshore)
• China specific baskets performance
• A/H premium and A-shares liquidity
• Breakdown of the Chinese alphabet soup