The 720: China Internet and Global Market Update

Goldman Sachs provides an update on China's internet sector and broader global strategy, highlighting tactical upside for Chinese equities and a delay in the US Fed's rate-cut cycle.

Key Takeaways

• 1.Mixed 1Q results are expected for China Internet mega-caps, but a more favorable setup is seen for the second half of 2026 driven by transaction platforms and cloud growth.
• 2.The Fed rate cut forecast has been delayed, with the final two cuts now expected in December 2026 and March 2027 due to persistent core PCE inflation.
• 3.A tactical upside case is highlighted for Chinese equities ahead of a reported mid-May meeting between President Trump and President Xi.

Table of Contents

• In Focus | China Internet
• Listen Up - GS Webcasts on the Agenda
• China Strategy | Trump-Xi meeting
• Themes in Play | US rate cycle, WUS, TFC Optical, India Strategy
• Internet | Nintendo, Sony
• Technology | Taiyo Yuden, All Ring
• Consumer | Food & Life, Tata Consumer Products, Titan, Eternal, China Durables
• Autos | Toyota Motor, Hyundai Motor India
• Financials | OCBC
• New | LY Corp
• GS Events | Laopu Gold, Yili, Mitsubishi Electric, Mengniu Dairy
• Around the world | US Strategy, Global Rates & FX

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