Goldman Sachs Recommends China Healthcare Stocks for Post-AI Growth Opportunities
Goldman Sachs has identified healthcare stocks in China as potential beneficiaries of post-AI growth, following strong second-quarter earnings performance. Nearly half of MSCI China index constituents exceeded expectations, with IT and healthcare leading the way. Chinese stock earnings grew at their fastest quarterly pace in five years—24% year-over-year—as AI-related sectors drove much of this momentum. The firm's analysis highlights a shift from hardware-focused AI investments to downstream application areas like data centers, autos, and especially healthcare. Goldman screened its buy-rated stocks for those with strong earnings growth forecasts through 2027 and recent upward revisions in estimates. Healthcare companies accounted for one-third of the top picks. Among these are Innovent Biologics (expected EPS to more than double), BeOne Medicines, CSPC, and Hansoh Pharma—each projected to outperform broader market expectations. Goldman forecasts MSCI China earnings growth at 8% this year versus a consensus estimate of 17%, suggesting cautious optimism.
Topics: AI-related sectors Chinese stocks earnings growth healthcare pharmaceuticals