GS 高盛：中国策略报告－关注基本面

China: Portfolio Strategy－Count on fundamentals

－Thoughts on recent market correction

March 6, 2007 　９页 英文

Market selloff led by risk-reduction in a global context
As of the March 5 close, offshore listed Chinese stocks (MSCI China) and Ashares
(SHSZ300 index) were down 21% and 9%, respectively, from their
recent peak. We attribute the recent market weakness to a combination of
surging multiples (A-share market in particular), lingering market concerns
on macro and policy uncertainties, and technical factors such as profit
taking and cyclical risk reduction. Compared to the inflation-led correction
in May 2006, the market seems more focused on growth prospects in the
current episode.
Fundamental picture remains intact
We stress that macro and corporate fundamentals for China remain robust;
our economists do not see material changes to their overall constructive
view on both global and China growth. In conjunction with further
potential currency appreciation and other favorable liquidity factors, the
supportive economic and corporate