{"id":3907,"date":"2026-06-03T03:34:17","date_gmt":"2026-06-03T03:34:17","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/goldman-cuts-hk-stocks-in-favor-of-mainland-china-ai-hardware-plays\/"},"modified":"2026-06-03T03:34:17","modified_gmt":"2026-06-03T03:34:17","slug":"goldman-cuts-hk-stocks-in-favor-of-mainland-china-ai-hardware-plays","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/goldman-cuts-hk-stocks-in-favor-of-mainland-china-ai-hardware-plays\/","title":{"rendered":"Goldman cuts HK stocks in favor of mainland China AI hardware plays"},"content":{"rendered":"\n<div>\n<div data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<p><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"xyz-data\">Goldman Sachs is officially preferring mainland Chinese stocks to those traded in Hong Kong. The investment bank on Wednesday cut its rating on H shares to market-weight from overweight, while staying overweight on mainland China&#8217;s A shares \u2014 as a way to play artificial intelligence hardware. Most of China&#8217;s AI semiconductor companies and their suppliers are traded on the mainland stock exchange. For a second time in a year, Goldman said it&#8217;s raising its 12-month target on the CSI 300 \u2014 this time to 5,500, from 5,300 previously. That offers nearly 12% upside from Tuesday&#8217;s close. The firm still expects 11% potential gains over the next 12 months for the H-share-heavy MSCI China index, but lowered it to market-weight in a regional context. So far this year, the Hang Seng Index is up about 1.5%, while the CSI 300 in mainland China has gained more than 6%. The underperformance is starker when looking at tech. The Hang Seng Tech index has fallen more than 5.5% year-to-date, while the Nasdaq-like ChiNext has surged more than 25% during that time. &#8216;Hard tech&#8217; The divergence reflects how Beijing&#8217;s AI policy has focused more on hardware development than models and software applications. AI hardware has driven 85% of the $3.8 trillion in Chinese AI equity market gains since the DeepSeek moment in January 2025, Goldman Sachs&#8217; Kinger Lau pointed out in the report. China accounts for at least 10% of AI-related market capitalization worldwide, but Chinese AI stocks &#8220;are substantially under-owned by international investors,&#8221; he said. The gap has shown up in earnings as well. &#8220;Hard Tech stocks have delivered strong top-line and profit growth but large-scaled Internet companies have continued to struggle to grow their bottom-line,&#8221; Lau said. Highly anticipated Chinese chip and humanoid robot IPOs are also coming to the mainland market, instead of Hong Kong, while H-share AI model companies are planning A share listings.<\/span><\/span><\/span><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Goldman Sachs is officially preferring mainland Chinese stocks to those traded in Hong Kong. The investment bank on Wednesday cut its rating on H shares to market-weight from overweight, while staying overweight on mainland China&#8217;s A shares \u2014 as a way to play artificial intelligence hardware. Most of China&#8217;s AI semiconductor companies and their suppliers [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[247,557,3501,764,3503,3502,564,191],"class_list":["post-3907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-china","tag-cuts","tag-favor","tag-goldman","tag-hardware","tag-mainland","tag-plays","tag-stocks"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/3907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=3907"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/3907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/3908"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=3907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=3907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=3907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}