by winston » Tue Mar 15, 2022 2:30 pm
G Sachs: US Institutional Investors Hold About USD750B of CN Stocks; Dotcoms' Valuations Reflect Risk Factors
Goldman Sachs estimated that the U.S. institutional investors currently own approximately USD750 billion (approximately HKD5.87 trillion) of Chinese stocks, including A-shares, H-shares, and ADRs.
Hypothetically, it is projected to take 2 days (for A-shares), 143 days (for H-shares) and 61 days (for China ADRs) for the institutional investors to fully liquidate all of their holdings in Chinese equities, the report added.
On another note, the broker remarked that, as of last Friday (11th), Chinese internet stocks were trading on 17.2x fP/E, 0.6 fPEG, with their valuations showing significant discounts, compared to those of their U.S. peers.
Acknowledging the persisting apprehensions over the tense China-U.S. relations and regulatory concerns in mainland China, Goldman Sachs estimated that the potential decoupling risks are already embedded in the corresponding equity portfolios.
Source: AAStocks Financial News
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