Goldman Sachs learns painful lesson on China

“The first lesson is that you want to treat EMs and EMs ex-China differently,” Goldman’s Kamakshya Trivedi said. — Bloomberg

BEIJING: Goldman Sachs Group Inc’s head of global currency, rates and emerging markets strategy says he’s learned two main lessons from one of the biggest and most common bad calls of 2023: the bet on post-pandemic China’s reopening boom.

At the beginning of the year, Goldman was among the chorus of Wall Street banks pinning their hopes on a bright 2023, in part on recovery in China, with strategists including Kinger Lau predicting a 15% rally in the Chinese stock market.