Goldman Sachs shifts preference from Hong Kong stocks to mainland China AI hardware plays

Goldman Sachs has lowered its view on Hong Konglisted H shares to market weight from overweight, while keeping a positive stance on mainland China A shares. The bank said the mainland market offers better exposure to artificial intelligence hardware companies and suppliers. In a report published Wednesday, Goldman raised its 12month target for the CSI 300 index to 5,500 from 5,300, implying upside from Tuesday’s close. It still sees potential gains in the MSCI China index, but said Hong Kong shares are less attractive in a regional comparison. The call comes as mainland China stocks have outperformed Hong Kong this year, especially in technology. Goldman said Beijing’s AI policy has emphasized hardware more than software, and that AIrelated gains in China have been driven largely by semiconductor and other “hard tech” names. The bank also noted that Chinese AI stocks remain underowned by global investors.