Dec
05
Betting on Chinese Stocks? Check Foreign Holdings, Goldman Says
By-
Shares with more than 5% foreign ownership tend to outperform
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Examples in Shenzhen include Hangzhou Hikvision and Midea
It’s worth looking for companies with relatively high foreign ownership when buying Chinese shares, according to Goldman Sachs Group Inc.
Onshore stocks that are more than 5 percent-held by foreign investors typically beat the overall market, Goldman’s chief China strategist Kinger Lau said. Examples include Hangzhou Hikvision Digital Technology Co. and Midea Group Co., which have surged 125 percent and 82 percent in the past 12 months as a trading link to Shenzhen boosted their foreign ownership to more than 9 percent. The Shenzhen Composite Index has dropped 9.7 percent since the link was opened on Dec. 5, 2016…
Betting on Chinese Stocks? Check Foreign Holdings, Goldman Says
