Goldman Sachs Explains The Simple Way To Know Whether Chinese Stocks Will Go Up Or Down

From Goldman Sachs’ big upgrade of China, this chart shows that basically, Chinese stocks outperform the rest of Asia when China isn’t tightening, and underperform when China is tightening.

Of course, that could be said for a lot of markets at a lot of the time (See: the US).

What’s key is that Goldman — and others, like Deutsche — are convinced that the tightening cycle is nearing the end, and that the time to jump on board equities there is now.

china

Photo: Goldman Sachs

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