On February 5, Goldman Sachs Chief China Strategist Liu Jinjin and his team published a research report saying that if the launch of the leveling standard, the national team has been about 70 billion yuan of A-shares in the past month, and the basic size of the market can stabilize about 200 billion yuan, equivalent to 0Around 8%. Potential funds are abundant: such as cash for state-owned enterprises, Huijin and CIC, insurance and pensions, foreign exchange reserves, and central banks.
Goldman Sachs noted that direct intervention in the market is not uncommon. Depending on the size of the intervention and the accompanying intervention, it can be effective in some cases.
Goldman Sachs believes that buying helps break the spiral. Reforms, policy coherence, and plans to address macroeconomic structural challenges are necessary for China's valuation to recover.
For the landing direction, Goldman Sachs**, the national team prefers sectors, broad-based index ETFs with high weights, cash return strategies and high-quality Chinese state-owned enterprises. At the same time, Goldman Sachs pointed out that the market margin call and systemic risk are generally controllable, but the relative risk of small and mid-cap stocks is higher. (Surging News reporter Sun Mingwei).
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