Goldman Sachs Group, a strategist including Timothy Moe, said in a new report that he is bullish on the stock markets of China and South Korea, and predicts that Asian stock markets that underperform this year will outperform other markets next year as China's epidemic prevention measures adjust and global fundamentals improve.

Goldman Sachs Group maintains the "overweight" rating of the CSI 300 index and the MSCI China index in his Asian asset allocation. Strategist Timothy Moe and his team expect the CSI 300 index and the MSCI China index to return 16 per cent over the next 12 months. In addition, Goldman Sachs Group also upgraded the rating of China's Hong Kong stock market to "holding wait-and-see" and the rating of South Korean stock market to "overweight".

Goldman Sachs Group strategist said: "after the strong performance of ASEAN and India in 2022, with the rebound of the Chinese market and the expected recovery of the South Korean market, the leadership of Asian stock markets is likely to shift northward." They also say the second quarter of 2023 is a potential inflection point for Asian stock markets, when the dollar will peak as the Fed is likely to turn.

Strategists Goldman Sachs Group expect South Korea's Kospi index to rise 11 per cent over the next 12 months, while Singapore's benchmark stock index is likely to rise 10 per cent over the next 12 months. At the same time, Goldman Sachs Group is also bearish on the following markets, including downgrading the Indonesian stock market from "overweight" to "holding wait-and-see" and downgrading Thailand and Malaysia to "underweight".

It is worth noting that the Chinese stock market has led the world in gains since November, with the MSCI China index up more than 24 per cent in November, while the MSCI global index is up less than 5 per cent. In addition to Goldman Sachs Group, a number of foreign institutions have also expressed optimism about the Chinese market recently.

Bill Maldonado, chief investment officer of Eastspring Investments, the UK asset manager, said: "the worst has been digested and there is a lot of room for the Chinese stock market to rise."

Michael Lai, China equity portfolio manager for the emerging markets equity team of US asset management giant Franklin Templeton, said investor sentiment in the Chinese stock market and overall market valuations are now at historically low levels and the downturn will not last long. "compared with other global markets, we are optimistic about the investment prospects that the Chinese stock market may show in the future," he said. "

Andrew McCaffery, chief investment officer of Fidelity International, said recently: "now is the time to buy bottom Chinese assets and pick up bargains." He believes that investors should now distinguish global investor sentiment from the reality of the Chinese economy, which is trying to promote strategic industries, such as infrastructure construction, which will give rise to numerous investment opportunities.