Goldman Sachs Group Inc. lowered its rating on Hong Kong-traded China stocks due to low earnings growth and a potential consensus downgrade. The bank upgraded shares in India, citing the market’s strategic appeal.
“With valuations generally at fair levels relative to the macro backdrop, we expect earnings to be the main driver of returns,” strategists including Timothy Moe wrote in a note, referring to Asia markets. The investment bank cut Hong Kong-listed Chinese companies to market-weight and Hong Kong firms to underweight.
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