Goldman Sachs Wealth Management CIO Advises Against Investing in China

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Goldman Sachs Group Inc.'s wealth-management business's Chief Investment Officer, Sharmin Mossavar-Rahmani, recently shared insights regarding investment prospects in China. Mossavar-Rahmani emphasized that despite China's significant stock-market declines, they do not necessarily serve as crucial indicators for investment decisions in the country.

In a statement to Bloomberg, Mossavar-Rahmani highlighted that many clients have expressed interest in investing in China due to its perceived affordability. However, she cautioned against such investments, citing various concerns about the country's economic outlook.




Mossavar-Rahmani pointed out expectations for a gradual slowdown in China's economy over the next decade, citing challenges in the property market, infrastructure development, and exports. She also highlighted the lack of reliable economic data and uncertainties surrounding government policies, including restrictions on data availability and changes in information disclosure practices.

Regarding short-term stimulus measures, Mossavar-Rahmani mentioned the possibility of such interventions due to ongoing challenges in China's real estate sector. However, she cautioned that the data remains unclear, making it difficult to accurately assess the country's economic performance.

Despite China's formal announcement of a growth rate above 5% for 2023, Mossavar-Rahmani suggested that many analysts believe the actual growth may have been weaker than reported. As a result, she advised clients against investing in China at the present time.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making investment decisions.





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