Goldman Sees 11% Upside in China Stocks on Potential for US Deal

Goldman Sachs Group Inc. raised its target for Chinese stocks, citing improving prospects for a US-China trade deal that would remove a key overhang for the market.

Referring to trading patterns seen in other countries “that have concluded trade agreements with the US in the past months, a potential US-China trade deal could be a market-clearing event for Chinese stocks,” strategists including Kinger Lau wrote in a note dated Monday.