Goldman Sachs is bullish on the Chinese stock market in 2026: the MSCI China Index is expected to rise 20%, and the Shanghai and Shenzhen 300 is looking at 5,200 points 

The Zhitong Finance App learned that Goldman Sachs expects the Chinese stock market benchmark index to rise further in 2026 as profit growth is supported by artificial intelligence and policy measures, although the increase will slow down from last year. The bank expects the MSCI China Index to reach 100 points by the end of 2026, up 20% from the level at the end of 2025; the Shanghai and Shenzhen 300 Index is expected to rise 12% to 5,200 points in 2026.

Goldman Sachs strategists said that China's stock market returns in 2026 will be mainly driven by improved corporate profits. With the combined support of the development of artificial intelligence, corporate “going overseas”, and anti-domestic policies, profit growth is expected to increase from 4% in 2025 and accelerate to about 14% from 2026 to 2027. Meanwhile, the net capital inflow to the south is expected to reach 200 billion US dollars, or another record high. In terms of industry allocation, Goldman Sachs is still optimistic about topics related to artificial intelligence, favors service-oriented consumption in the consumer sector, and focuses on the materials industry in the cyclical sector, while maintaining an overmatched view of the insurance sector.

The data shows that in 2025, the MSCI China Index rose 23%, and the Shanghai and Shenzhen 300 Index rose 18%. The Chinese stock market achieved impressive gains in 2025, and this trend continues into the new year. The Chinese stock market started strongly in 2026. The Shanghai and Shenzhen 300 Index has risen 3.5%, reaching its highest level in four years; the MSCI China Index has risen 3.4%, outperforming the S&P 500. Goldman Sachs, along with other major institutions, maintains a positive outlook. This upward forecast reflects confidence that earnings expansion, policy initiatives, and new growth drivers will continue to attract investors.