Goldman Sachs bullish on Chinese stocks

(ECNS)--China's stock market will see a bullish run in 2015, according to an analyst with Goldman Sachs, the global investment bank.

Kinger Lau, a chief analyst at Goldman Sachs China, said speculative demand in real estate will decrease from 12 percent in 2014 to 3 percent in 2015, transferring nearly 400 billion yuan ($65 billion) of capital to the Chinese stock market.

Chinese economic growth rates may slow to as much as 7 percent next year, predicted Song Yu, a Goldman Sachs Gao Hua economist. Although this would be the lowest rate since 1990, slower economic growth would provide more opportunities for reform and is crucial for sustainable economic growth and stock price revaluation.

In addition, A shares will see better performance in the first half of next year. According to Goldman Sachs, the allocation demand of overseas capital will give these shares new mobility.

With the smooth progress of Hong Kong-Shanghai stock connect, more offshore funds will be allocated to the A shares market, which will enhance China's importance in the global stock sector, Lau added.

Hot stocks, in medical healthcare, insurance, technology and public utilities, will be up slightly by early next year, according to Goldman Sachs. Concerning overall investment, Lau advised that focusbe placed on land reform, state-owned enterprise reform, opening of capital markets and domestic consumption.