China stops here — Goldman
If we think we’ve got it bad in SA right now, spare a thought for China. Its markets have been smacked this year, and even its unreliable GDP growth numbers are considered to have fallen short.
Now China is getting booted by Goldman Sachs, the US investment bank famously compared to the great vampire squid of global markets, according to Forbes.
In a 65-page report released in recent weeks, Goldman signals an end to the China story, speaking of its “funny maths” and overvalued companies. Goldman now predicts that China’s companies will provide an annualised return of only 4% per year until 2020 — too low to justify their lofty valuations.
As Forbes sees it, “Goldman Sachs has basically thrown in the towel on China. Call it If you have a spare R23m you could buy this this unique restaurant/bar, which was formerly a public toilet in Spitalfields, one of the trendiest spots in east London. The estate agents are marketing this “charming and quirky” property for £999,000 and say it is “brilliantly situated” within easy walking distance to both Shoreditch and Algate. what you want — a soft landing, a hard landing, a transformation, chopped liver — China is in decline.”
Bad news for Naspers perhaps, which has soared as a direct result of its investment in burgeoning tech heavyweight Tencent. Still, Naspers can always lean back on its pan-African Pay-TV operation MultiChoice if all else goes to pot.