Seeking Alpha: Goldman Sachs-China Stocks May Go Crazy in Second Half of 2011

From Seeking Alpha:

The chairman of Goldman Sachs Asset Management, Jim O’Neill, just came out with some very encouraging words for a big rally in China-based stocks and a general global stock market rally in the second half of 2011. These remarks were made during an interview on Bloomberg TV.

ONeill said the Chinese stock market could ‘go crazy’ in the next few months and spark a global stock market rally. The article goes on to say: ‘His positive comments on the outlook for China came as two people with knowledge of the matter said Goldman Sachs plans to set up a yuan-denominated private equity fund in the nation. Chief Executive Officer Lloyd C. Blankfein attended a ceremony for Goldman Sachs in Beijing yesterday, the people said, declining to be identified before an announcement.’

Those statements and actions by Goldman Sachs would seem to imply that Goldman sees a major opportunity in China based equities right now. The opportunities for growth in China are huge and after a tough couple of years for both Chinese and global stock markets. There is strong reason to believe that the long term fundamentals from China will again get traction from investors around the world. The population in China is so much larger and growing so much faster than the U.S., you can see a chart of the population growth here.

Unfortunately, the mindset of many American investors is too U.S.-centric and there is a belief that China based stocks will always have a lower PE ratio and valuation compared to their U.S. counterparts.

Posting from “Seeking Alpha”


About Jeffrey Friedland

Jeffrey Friedland is Managing Director of the financial services firms, Friedland Global Capital Pte. Ltd.(, which has representatives in China, Singapore, the Philippines and Indonesia. Since 1981, the firm has facilitated growing entrepreneurial companies in emerging and frontier markets to access foreign investment capital. Since 1979 Mr. Friedland has assisted hundreds of companies worldwide with their business planning and financing objectives. In addition to providing corporate finance advisory services, the services provided by Mr. Friedland have included obtaining venture capital, mergers and acquisitions, and assistance to companies regarding financing their growth and going public. Mr. Friedland has traveled globally with the management of companies with the objectives of assisting the companies with obtaining capital, expanding globally and entering into strategic alliances. Mr. Friedland has been featured or quoted in numerous publications including the Wall Street Journal, USA Today, The South China Morning Post (Hong Kong) and Forbes. He has also been featured over 60 times on Financial News Network, which is now CNBC, as well as on Bloomberg and Bloomberg TV. Mr. Friedland has been a frequent speaker at various trade shows, conferences, conventions and meetings throughout North America, Europe and Asia, and at Bloomberg sponsored events, including in London. Mr. Friedland is the author of "All Roads Lead to China," an Investor Road Map to the World's Fastest Growing Economy, which is available in print and Kindle editions at Amazon.

Posted on May 17, 2011, in China, China Economy, Goldman Sachs, Jim O'Neill, Uncategorized. Bookmark the permalink. Leave a comment.

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