China’s push to reshape its capital markets is set to give stock valuations a significant boost, according to Goldman Sachs. UBS Group joined the chorus by upgrading its recommendations on Hong Kong-listed stocks and a benchmark of Chinese stocks for overseas investors.
Valuations for the yuan-traded stocks, also known as A shares, may expand by as much as 40 per cent if China’s market manages to close gaps with global leaders in terms of factors including dividend payouts, buy-backs, corporate governance and institutional ownership after the sweeping reforms, Goldman analysts led by Kinger Lau wrote in a note on Tuesday.
Meanwhile, UBS…
