Goldman identifies Chinese healthcare stocks as AI trade broadens

Goldman Sachs says Chinese healthcare stocks may offer investors opportunities as interest in AIrelated names becomes more crowded. The firm’s strategy team said earnings across Chinese companies picked up in the second quarter, with healthcare and IT among the strongest sectors. In a Sept. 7 report, Goldman said nearly half of MSCI China constituents beat estimates, while tracked earnings rose 24% year over year, the fastest pace in five years. Analysts said investors are now looking beyond AI hardware and semiconductors to sectors such as healthcare, data centers, autos, and AI applications. Goldman’s screening focused on buyrated Chinese companies with expected annual earnings growth above 15% through 2027 and recent upward revisions in earnings estimates. Healthcare names were prominent on the list, including Innovent Biologics, BeOne Medicines, CSPC, and Hansoh Pharma. Goldman expects MSCI China earnings growth of 8% this year, below the broader consensus forecast.