Goldman Sachs have highlighted growing optimism among offshore investors regarding the sustainability of China's consumer recovery. Investors cite:
- policy stimuli
- changes in consumption patterns
GS make particular note of European Emerging Markets (EM) funds becoming more optimistic about the Chinese market. GS says such funds are actively looking to increase their holdings in Chinese consumer stocks from currently low levels.
- since January 2025, there has been a noticeable increase in long positions
- value funds are mainly seeking underperformers and key beneficiaries of policy stimuli
- more active funds are seeking out new investment targets
