Goldman expects China share mkt to improve next year
SHANGHAI, Nov 7 (Reuters) - China's economy is expected to stabilise in the second half of 2009, potentially boosting the country's stock markets, Wall Street investment bank Goldman Sachs (GS.N) forecast on Friday.
The Shanghai-Shenzhen 300 Index .CSI300, which tracks China's 300 biggest listed companies, may rise 11 percent to 1,980 points next year, China strategist Deng Tishun told reporters in Shanghai.
Hong Kong's China Enterprise Index .HSCE of top locally listed mainland companies may jump 53.4 percent to 8,900 points, Deng said.
The Shanghai-Shenzen 300 Index ended on Friday at 1,677.827, and the China Enterprise Index stood at 6,794.59.
China's stock market has fallen about 70 percent from a year ago.
Although profits at China's listed companies are likely to fall 17 percent in general in 2009 compared with this year, the stock market will benefit from attractive share valuations, improved liquidity and government stimulus plans, Deng said.
In the first half of 2009, consumer-related companies, Internet firms and telecommunication stocks are worth buying, while banking, insurance, real estate, raw materials and transportation stocks are likely to outperform the market in the second half, Deng said.
Deng also said that a healthy economy, rather than market-boosting policies, would give real support to the stock market. (Reporting by Helen Ding and Samuel Shen, Editing by Jacqueline Wong)
