Synopsis
On April 14, Goldman Sachs adjusted its targets for Chinese stock indices downward due to escalating US-China trade tensions. The MSCI China Index target was revised to 75, while the CSI 300 Index target was cut to 4,300. Even so, potential gains remain, highlighting investor concerns amid ongoing economic uncertainties.Key Takeaways
- Goldman Sachs cut targets for major Chinese stock indexes.
- Trade tensions between US and China are at unprecedented levels.
- MSCI China Index target reduced to 75.
- CSI 300 Index target set at 4,300.
- Investor confidence shaken by tariff escalations.
Mumbai, April 14 (NationPress) Goldman Sachs has once again revised its targets for major Chinese stock indices, pointing to escalating trade tensions between the US and China.
This marks the second adjustment this month by the global investment bank. A team led by Kinger Lau noted in a statement on Monday that US-China trade tensions have reached unprecedented levels.
These rising tensions have sparked fears of a global recession and the increasing likelihood of a separation between the two largest economies in critical areas such as capital markets, technology, and geopolitics.
As per the statement, the 12-month target for the MSCI China Index has been reduced to 75 from 81. Likewise, the target for the CSI 300 Index has been lowered to 4,300 from 4,500.
Despite the downward revisions, these figures still indicate potential gains of 12 percent and 15 percent respectively from Friday’s closing prices.
Chinese stocks have faced pressure due to the escalating trade conflict. Recently, Beijing imposed 125 percent tariffs on US goods in retaliation to US President Donald Trump’s 145 percent tariffs on Chinese products.
These developments have diminished investor confidence and raised concerns over further escalation, according to the statement.
However, markets experienced a brief recovery on Monday following the US announcement to pause tariffs on phones, computers, and other consumer electronics.
In the wake of this announcement, the MSCI China Index surged by as much as 2.5 percent, while the CSI 300 Index climbed up to 0.7 percent.
Goldman Sachs has generally maintained a positive outlook on Chinese equities, even during market downturns.
Earlier in February, Kinger Lau and his team had raised their MSCI China target to 85, fueled by optimism surrounding the growth of AI firm DeepSeek.
However, since then, the index has fallen by more than 8 percent amid escalating trade threats from Trump.
Earlier this month, on April 6, the bank had already reduced its MSCI China target from 85 to 81 following the implementation of Trump’s new tariffs on April 2.
