Goldman picks China healthcare stocks for a post-AI trade
Chinese stocks' earnings tracked by Goldman Sachs grew at their highest quarterly pace in five years.
TL;DR
- Chinese corporate earnings grew 24% year-over-year in Q2, the fastest pace in five years.
- Growth was primarily driven by AI-related stocks, but investors are now looking beyond this sector.
- Goldman Sachs identified potential growth in downstream AI applications such as data centers, AI models, autos, and healthcare.
- Healthcare stocks, especially pharmaceuticals, represent a significant portion of potential investment opportunities.
- Innovent Biologics, BeOne Medicines, CSPC, and Hansoh Pharma are identified as key healthcare companies with strong earnings growth forecasts.