China's equity markets kicked off 2026 with strong momentum, building on last year's gains, as global investment bank Goldman Sachs doubled down on its bullish stance, urging investors to maintain an overweight position on Chinese stocks.
In a macro report released by Goldman Sachs on Monday, the investment bank affirmed its recommendation to overweight both A-shares and H-shares within the Asia-Pacific region, citing robust economic fundamentals and supportive policy tailwinds.
"We are maintaining our overweight recommendation for China's A-shares and H-shares within the Asia-Pacific region for 2026, as we believe both markets have solid upside potential over the year ahead. Our current forecast points to a return of around 15 percent," said Liu Jinjin, chief China equity strategist at Goldman Sachs in an interview with China Central Television.
According to Goldman Sachs' latest Investment Outlook 2026 report, China's economic growth in the new year will be significantly supported by strong exports of high-tech and high-value-added products.
On the macro front, Goldman Sachs highlighted a favorable liquidity environment for the Chinese equity market. With the U.S. Federal Reserve expected to continue its rate-cutting cycle, and the People's Bank of China, the country's central bank, maintaining a moderately loose monetary stance, liquidity conditions are poised to support further equity market gains.
"We believe that China's exports will be quite strong this year, and this will be the biggest contributor to GDP. We expect corporate earnings to grow by about 14 to 15 percent year on year in 2026. I think one key factor investors should watch in 2026 is liquidity, both internationally and domestically, as we believe the ample liquidity will provide positive support to the equity market," said Liu.
Sector-wise, Goldman Sachs expects the "AI+" investment theme to dominate China's equity landscape in 2026. The bank identifies hardware technology, insurance, entertainment, and online retail as particularly attractive segments.
"Sectors and specific stocks related to AI remain among those we believe will perform particularly well this year. We also favor stocks with a high potential to gain more market share in overseas or global markets," said Liu.
Goldman Sachs recommends overweight position on China equities in 2026 outlook
Colombians are heading to the polls on Sunday to elect their next president. The country's constitution prevents the current President, Gustavo Petro, from running for a second term.
Yet, many see this election as a referendum on the policies of Gustavo Petro, Colombia's first leftist president.
There are 14 candidates on Sunday's ballot, but the polls show it will likely be a tight three-way race.
The frontrunner is Ivan Cepeda, a 63-year-old three-term senator, representing President Gustavo Petro's party, the Historic Pact coalition. Cepeda has vowed to defend and deepen Petro's progressive reforms and social justice policies to reduce inequality. He also promises to continue the government's controversial "Total Peace" strategy to negotiate the disarmament of remaining guerrilla groups and criminal gangs.
"True prosperity comes from equality, from access to rights, and from transforming the peripheral and excluded territories of the rural world," Cepeda said at a campaign rally.
Running as a political outsider and independent is Abelardo de la Espriella, a 47-year-old lawyer, nicknamed "The Tiger." He has presented himself as the "authority and order" candidate who will reduce state spending by up to 40 percent in the next four years.
"(First,) we must fight insecurity. Colombia is suffering today from a pandemic of insecurity. Crime is out of control: extortion, cattle theft, smuggling, drug trafficking," he said to his supporters at an election event.
According to polls, the third candidate with strong support is Paloma Valencia. The 48-year-old senator represents the Democratic Center party led by popular former President Alvaro Uribe Velez. Her candidacy is backed by politicians and economists who are concerned with growing levels of public debt. They want to see a return to more conservative fiscal policies.
"I don't want to be a president who governs alone, locked away in glass offices. I want to be a president who stands with citizens, who embraces them, who reaches out to them, who has a team, and who governs to transform Colombia," the candidate said at the campaign event
According to polls earlier in the year, many voters are expressing concerns about unemployment, rising living costs, corruption, and, above all, public security.
The election comes after a turbulent year that the International Committee of the Red Cross has called "the worst humanitarian consequences of armed conflict over the past decade."
"(We arrive at this election in a tense atmosphere - tense) because of the economic situation, because of the security situation, and because of the narratives that have been built around the country's main problems. On top of that, emotions, ideas and social media have all helped raise (the tone,)" said Eduardo Velosa, associate professor from International Studies Javeriana University.
If no candidate receives 50 percent of the vote, a runoff election will be held between the top two finishers on June 21st.
Colombians prepare to choose their next president
