Goldman Sachs says investors want Chinese firms’ overseas growth to be profitable, as weak demand at home pushes more companies abroad. The bank says geopolitics and competition still make markets wary.
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01Summary
- 01Trina Chen of Goldman Sachs Research said the market wants to see “profitable expansions” from Chinese companies going overseas.
- 02Goldman expects Chinese companies’ overseas market share to rise to 31% by 2035 from about 18% now.
- 03The bank’s analysis covered more than 10 sectors, including express delivery, industrial robots and white goods such as air conditioners.
- 04Geely said on Friday that it plans to enter Canada next year.
- 05Chen said a 10% to 15% loss of market share could cut a company’s market capitalisation by 50% to 80%.
02Why it matters
The story shows how investors are judging Chinese companies’ global expansion and what could hit their share prices. It also signals where growth may come from next as demand in China remains weak.
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