Goldman Sachs strategists predict that the Chinese stock market will rise within two to three months after the US presidential election. However, they warn that if Trump wins, there may be a reflexive reaction in the Chinese stock market.

In a trading briefing released by Goldman Sachs on Wednesday, they stated, 'In the past two weeks, the Chinese stock market has not been sold off due to the repricing of Trump risks, indicating the resilience of the Chinese stock market. We believe that the risk sentiment in China is likely to be bullish after the election.'

As the election approaches, global investors are preparing for volatility, and concerns about a potential trade war erupting after Trump's victory have fueled a shift towards risky assets. However, Goldman's report points out that China's economic stimulus policies have already created so-called 'policy put,' which can protect Chinese stock market investors from downturns.

Strategists say, 'Overall, policy stimulus may be strong and sustained, especially in the event of a Trump victory.'

Data shows that the CSI 300 index has risen by about 23% since its low point in September, making it one of the best-performing major indices globally in the past three months.

In the interest rate market, Goldman Sachs predicts that if Trump wins, the yield on longer-term bonds will decline faster than the yield on short-term bonds, creating a phenomenon known as a flattening yield curve. A Harris victory, on the other hand, would lead to the opposite steepening effect.

Goldman Sachs continues to be bullish on five-year Chinese government bonds.

It is worth mentioning that Goldman Sachs has repeatedly expressed a bullish view on the Chinese stock market. On October 25, Kinger Lau, Chief China Stock Strategist at Goldman Sachs Research Department, released a research report stating that there may still be further upside potential for the Chinese stock market in the future. He pointed out that the correlation between Chinese stocks and developed markets has dropped to about 30%, indicating that investing in Chinese stocks can provide international investors with diversification benefits.

Goldman Sachs has also upgraded its rating on the Chinese stock market to overweight. Strategists including Tim Moe stated in a report on October 5 that if relevant departments implement policy measures, indicators tracking the Chinese stock market could rise by another 15%-20%. They added that the valuation of the Chinese stock market is still below historical average levels, and earnings may improve, while global investors' positions remain relatively low.