Goldman says no China stock bubble, sees rally over next 12 mths

Taipei

CHINA'S biggest stockmarket rout since 1992 has done nothing to erode the bullish outlook of Goldman Sachs Group Inc.

Kinger Lau, the bank's China strategist in Hong Kong, predicts the large-cap CSI 300 Index will rally 27 per cent over the next 12 months as government support measures boost investor confidence and monetary easing spurs economic growth. Leveraged positions aren't big enough to trigger a market collapse, Mr Lau says, and valuations have room to climb.