Goldman Sachs Raises Target for MSCI China Index to 90 in Next 12 Months, Foreign Capital Seeks Opportunities in A-shares Market with Economic Growth Policies

Entering July, the A-share market has seen a breakout trend, continuously breaking through 3500 and 3600 points. Recently, Goldman Sachs raised its target for the MSCI China Index over the next 12 months from 85 to 90. Foreign capital is increasingly optimistic about the future direction of A-shares, reflecting the effectiveness of stabilizing economic growth policies and the improvement in economic data. As a result, foreign capital is increasing their allocation to Chinese assets, with Chinese assets potentially seeing a valuation recovery.

From an economic transformation perspective, emerging technologies such as human-machine robots, the Internet of Things (IoT), algorithmic innovation, and semiconductor development have presented opportunities for growth. The Ministry of Industry and Information Technology held a symposium in Beijing to discuss the formulation of the "Enhancing Consumer Goods Supply-Side Structural Reform Action Plan" and the promotion of industrial new industries. This will lead to the improvement of policies supporting the development of human-machine robots, IoT, high-end instruments, and other key industries, with benefits for listed companies that are technically advanced and have a strong competitive edge.

In addition, Shanghai has issued a series of measures to further expand the application of artificial intelligence (AI), including reducing the cost of using AI algorithms, issuing 6 billion yuan in AI coupons, and supporting the development of new AI models. This will have a positive impact on the performance of the technology sector. From a year-to-date perspective, the tech bull market is characterized by strong growth, with emerging technologies such as human-machine robots, algorithmic innovation, innovative pharmaceuticals, and giant intelligence presenting significant opportunities for investment.

Recently, China's stock market has broken out of its consolidation phase, with the MSCI China Index and the Shanghai Composite Index both reaching new highs. This is due to a combination of factors, including the release of above-expected GDP data for the first half of the year, the resumption of IPOs in the Hong Kong market, and the positive impact of economic growth policies.

In terms of AI policy support, Shanghai has issued a series of measures to further expand the application of AI, including reducing the cost of using AI algorithms, issuing 6 billion yuan in AI coupons, and supporting the development of new AI models. This will have a positive impact on the performance of the technology sector.

Currently, the capital market has gradually emerged from its growth phase, with investors adopting a value investment mindset to capitalize on opportunities. The government's "National Childbirth Subsidy System Implementation Plan" was released on July 28, which will provide subsidies to parents of children under three years old starting from January 1, 2025. This initiative is expected to boost the birth rate and promote economic growth.

The government's "National Childbirth Subsidy System Implementation Plan" aims to increase the fertility rate and promote economic growth. The plan will provide subsidies to parents of children under three years old, with a total funding of 1200 billion yuan for this year. This initiative is expected to have a positive impact on the performance of industries such as dairy products, baby supplies, education, and other related sectors.

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Source: Sina News