Chinese Tech Shares Drop After Goldman Downgrades Growth Outlook - The Messenger
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Chinese Tech Shares Drop After Goldman Downgrades Growth Outlook

Goldman Sachs is the latest US investment bank to cut its 2023 growth forecast for China

China’s Hang Seng Index dropped 0.6% Monday D3sign/Getty Images

Chinese tech shares fell on Monday after Goldman Sachs cut its growth forecast for the country.

The Hang Seng Index (HSI) dropped 0.6% Monday, driven by a dip in Big Tech shares. Video-sharing platform Bilibili dropped 5% to $135.90. E-commerce giant Alibaba dipped 2% to $89.70.

The dips followed a Goldman Sachs research note on Sunday downgrading its full-year GDP growth forecast for China for 2023 from 6% to 5.4%, according to press reports.

Goldman is the latest Wall Street bank to cut its growth forecast for China. Bank of America, JP Morgan and UBS, among others, also lowered their outlooks for the country last week.

The dimmed forecast for China’s economy comes in the wake of data released last week showing a record-high level of unemployment -- 20.8 percent -- among 16- to 24-year olds. The sluggish data, coupled with weakened consumer sentiment and a number of macroeconomic issues, drove down hopes for the world’s second-largest economy.

Goldman Sachs did not immediately respond to The Messenger’s request for comment.

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