Goldman Sachs lists at least seven hurdles to a 20 per cent upside in China’s battered stocks amid market turbulence

39bdf3f3-ff27-4404-87f2-aef03e963852_82c4f8c0

Goldman Sachs believes China’s biggest stocks in onshore and offshore markets can rally by 20 per cent over the coming months. At least seven hurdles are blocking the recovery path, the US bank said.

Demand for diversification from China-mandated investors, slowing economic growth and corporate earnings, lack of forceful policy easing, disillusioned foreign funds, and underlying geopolitical risks are some of the reasons its buy recommendation since late last year has not quite paid off.