0247 GMT - China's stock market still has room to grow, Goldman Sachs analysts say in a research note. Liquidity and valuation expansion, as opposed to cyclical macro fundamentals, have been the main propeller of equity gains globally, China included, the analysts say. Although risk appetite is improving in the A share market, investor sentiment is nowhere near the euphoric levels observed in 2015, they say. GS thinks Chinese households could further shift their assets into equities from the property market and deposit accounts. Meanwhile, there is still a wide gap between rising foreign investor interest in Chinese stocks and their still-conservative equity allocations, they note. GS stays overweight on Chinese equities and raises its 12-month target for CSI300 to 4900 from 4500. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

August 28, 2025 22:47 ET (02:47 GMT)

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