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Chinese stocks suffered from a bearish year in 2018. However, a Goldman Sachs report says that China’s share market has already faced its rock bottom on the stocks and will likely rebound next year.
The investment bank based its report on its conclusion that investors already have priced in the worst scenario of China’s 2019 economic outlook.
The average price-earnings ratio of companies listed on the Shanghai and Shenzhen stock exchanges is at about 10. That’s much lower than the long-term average.
Analysts say that indicates under-estimated share prices and ample room for a rally should any good news hit the market.
