China Weekly Kickstart

Latest edition · August 29, 2026

China Weekly Kickstart A shares flat but MXCN lost 1

MSCI China dropped 1.2% while CSI300 was flat over the week, with Energy leading performance in both markets. The 2Q26 earnings reporting season showed solid aggregate YoY growth of 22% for All China listed firms and 15% for MSCI China.

In this edition of China Weekly Kickstart, Goldman Sachs reports that MSCI China declined 1.2% while CSI300 stayed largely flat (-0.2%), led by Energy outperformance. Corporate 2Q26 earnings showed strength, with All China listed firms growing earnings by 22% YoY and MSCI China up 15% YoY as reporting reached ~95% completion. Strategists maintain an Overweight allocation on Materials, Tech Hardware, Capital Goods, Retailing, and Insurance, projecting a 12-month MSCI China index target of 85 (+12% upside). Furthermore, the proprietary A-H rotation model favors H shares over A shares for the next 3 months, while Southbound Connect recorded US$1.3bn of weekly inflows.

Key takeaways from the latest edition

• 1.MSCI China fell 1.2% while CSI300 closed flat (-0.2%) during the week, with Energy outperforming across both onshore and offshore markets.
• 2.The 2Q26 corporate reporting season is near completion, with 95% of All China listed and 94% of MSCI China companies having reported, delivering 22% and 15% YoY earnings growth respectively.
• 3.Goldman Sachs' proprietary A-H rotation model indicates that H shares are poised to modestly outperform A shares over the next three months.

What this series covers

• Performance (Pages 8-12)
• Earnings and valuations (Pages 13-17)
• Flows (Page 18)
• Key reports
• Policies and news
• Charts of the Week: 2Q/1H26 Earnings Tracker
• Charts of the Week: Market Update
• Charts of the Week: Mutual Fund Positioning
• Charts of the Week: Proprietary Models and Barometers
• Goldman Sachs' China strategy and economic view at a glance
• Market stance
• Global GDP and China macro forecasts
• Sector stance
• China real GDP forecasts
• Macro indicators summary
• Performance snapshot: Global markets, commodities, FX and rates
• Weekly performance summary
• Weekly top and bottom performers in MSCI China
• Sector performance
• Relative performance of offshore China sectors
• Relative performance of onshore China sectors
• Earnings momentum and revisions
• China valuations
• Sector valuations
• Sector valuations and EPS growth of MSCI China and CSI300 (based on bottom-up consensus median estimates)
• Regional valuations
• MSCI market and sector index 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
• Disclosure Appendix

Edition archive

• China Weekly Kickstart A shares flat but MXCN lost 1

  August 29, 2026

• China Weekly Kickstart MSCI China declined 3 while CSI300 remained flat

  August 15, 2026

• China Weekly Kickstart Markets gained 1-2 with A-shares tech rebounding 7

  August 7, 2026

• China Weekly Kickstart Markets rebounded 1-3 supported by National Team buying

  July 24, 2026

• China Weekly Kickstart Offshore corrected 6 while A-shares fell 1

  June 27, 2026

• CHINA WEEKLY KICKSTART A-shares gained 3% but H lost 3% on further Hard vs Soft tech divide; Lujiazui Forum signaled rule-based capital account opening; May fixed asset investment and retail sales missed

  June 19, 2026