Bloomberg reports on Goldman Sachs China strategist in Hong Kong, Kinger Lau
- Says the CSI 300 Index will rally 27 percent over the next 12 months as government support measures boost investor confidence and monetary easing spurs economic growth
- Leveraged positions aren't big enough to trigger a market collapse, Lau says, and valuations have room to climb
- "It's not in a bubble yet" "China's government has a lot of tools to support the market."
Bloomberg add that Lau set his CSI 300 target on July 1 & confirmed it on Tuesday, and that he's been forecasting gains in Chinese shares for much of the past year.
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If you like the call, its an even better entry point today ....
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I noted earlier on the huge number of Chinese shares suspended from trade. I imagine once they are free to trade again there could be s a few sellers about. So, we may not have had a chance for the market to clear. I'd be wary about following the GS recommendation.
