Goldman Sachs maintained an overweight on A-shares in a new note, saying this
year’s market has seen extreme divergence with A-shares’ hard-tech names
substantially outperforming Hong Kong internet. It judges the A-shares AI
complex is not broadly frothy but warns valuations in semiconductors and certain
subsegments are rich and trading-concentration risk is elevated. Hong Kong
internet stocks have rebounded and, Goldman says, current prices largely
discount AI investment losses and pressure on core businesses; with subsidy
rollbacks and faster cloud/AI monetization, earnings could inflect in Q2–Q3,
supporting a gradual accumulation of high-quality Hong Kong-listed internet
leaders. On flows, hedge funds remain heavily positioned in Korea and Taiwan
while EM funds are beginning to overweight China.
