Goldman’s latest weekly update highlights the firm’s still-bullish view on Chinese markets. Their base case forecast for Shanghai’s CSI 300 provides for 18.4% upside.
They also tempt investors with a ‘Liquidity Overshoot’ scenario that forecasts a potential 46% upside. This essentially gives institutional investors intellectual cover for a further China punt.
Still, note that a CSI300 rally in July/August came collapsing down, and this recent second rally has thus far failed to break the last rally’s early-August high. These liquidity-driven ‘investment’ arguments might be starting to wear thin.
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