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Chinese stocks are currently cheaper than their U.S. and global counterparts, according to analysts at Goldman Sachs, who believe investors should act now to make the most of “discounted prices.”
The Wall Street bank listed more than two dozen Chinese stocks including a raft of tech and chipmaking firms, in a research note published Thursday, saying they had attractive valuations and likely solid growth.
“May has historically been a tough month for Chinese stocks but we’d buy on any seasonal weakness,” the analysts led by Kinger Lau stated.
Goldman recommended both Chinese cyclicals — whose prices tend to move up and down with the economy — and growth stocks, which investors expect to do better than the wider market.
The bank’s top stocks to buy include: