July 27, 2010 (Chinavestor) Following a bullish outlook on China's A shares from Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) is also constructive on Chinese stocks, saying the bottom is almost in and that the Shanghai A-Share Stock Price Index will probably move to between 2,800 and 3,100 by the end of this year, outperforming Hong Kong-listed shares along the way.
The A-share Index and the Shanghai Composite Index (SHA:000001) are both down about 22% this year, hepling China's equities to the worst performance among Asian stocks. Concerns about tighter monetary policy amid slower economic growth have pressured Chinese stocks, but Citigroup (NYSE:C) said those concerns "are settling in" and that Chinese stocks may jump as much as 14% by the end of the year.
Golman Sachs (NYSE:GS) said that is "fundamentally positive" China's A shares despite a recent pop higher. Citigroup (NYSE:C) recommended investors increase exposure to consumer, insurance, transportation, health-care, auto, technology and electrical machinery and equipment shares, according to Bloomberg News.