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Investing.com -- Goldman Sachs Group Inc (NYSE:GS). strategists have revised their projections for key Chinese stock indexes for the second time this month. This decision comes in response to the intensifying trade tensions between China and the United States.
The Goldman Sachs team, led by Kinger Lau, expressed concerns about the potential for a global recession and the risk of decoupling between the two largest global economies. These concerns extend to various strategic sectors, including capital markets, technology, and geopolitics.
The 12-month target for the MSCI China Index has been reduced to 75 from 81. Similarly, the target for the CSI 300 Index has been lowered to 4,300 from 4,500. These new targets suggest potential growth of 12% and 15% respectively from the closing levels last Friday.
Chinese stocks have been negatively impacted by the escalating trade war between the two largest economies in the world.
This comes after Beijing imposed retaliatory tariffs of 125% on the U.S., following President Donald Trump’s 145% tariffs on China. The possibility of further escalation in trade tensions continues to affect investor sentiment.
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