The 720 China Strategy, China Internet, CICC, GO, Ramsay Healthcare, Solar Industries, China GDP, Oil, US Credit

Equity Research 16 September 2026 | 7:19AM HKT

The 720: China Strategy, China Internet, CICC, GO, Ramsay Healthcare, Solar Industries, China GDP, Oil, US Credit

In Focus | China Strategy Michael Snaith | China Musings – Policy and macro back to school. As investor focus pivots back to Goldman Sachs (Asia) L.L.C.

macro and policy issues amid Mideast tensions and rising global yields, we reiterate Caleb Chan | our Overweight stance on China A shares versus Marketweight on offshore equities. Goldman Sachs (Asia) L.L.C.

We expect targeted fiscal support rather than large-scale stimulus from the September Politburo meeting to achieve the 4.5% GDP target, while noting China’s resilience to oil shocks and our forecast for USDCNY to reach 6.4 over the next 12 months. To navigate a muted beta market and crowded AI positioning, we recommend diversifying into domestic AI names, non-AI opportunities in healthcare and materials, and structural themes like Shareholder Returns and tactical IPO strategies. Kinger Lau

Listen Up - GS Webcasts on the Agenda

Global Physical AI: Framing the Forward Progress of Humanoids | 830am HK | Access Webinar | with Eric Sheridan, Mark Delaney, Jacqueline Du, Michael Snaith

China in Motion: Machinery & Battery | 10am HK | Key Takeaways from 2Q Earnings & Onshore Tour | Access Webinar | with Nick Zheng (in Mandarin)

China’s great Go Global expansion: From peripheral to core | 430pm HK | Access Webinar | with Trina Chen, Jacqueline Du, Nicolas Yi, Tina Hou, Chris Pan, Yuichiro Isayama, Ajay Patel, Michael Snaith

Themes in Play | China Internet, CICC, GO, Ramsay Healthcare

Navigating China Internet – Soft August online retail growth; normalizing Temu amid its 1P brand push. We lower our third-quarter online GMV and parcel volume growth estimates to 3% and 4%, respectively, following softer August national online retail goods GMV growth of 2% year-over-year and overall retail sales that missed consensus. We expect weaker travel demand, soft consumer spending, and a later Apple product shipment to weigh on third-quarter top lines across e-commerce, ads, and local services, while Temu’s US GMV growth moderated to 5% in August following the removal of the de-minimis exemption. Despite these headwinds, we view Temu’s long-term commitment to first-party brands and local supply chain investments positively, and we highlight Alibaba and JD as key ideas driven by accelerating cloud growth and profit recovery, alongside Buy-rated logistics leaders including SF-H, JD Logistics, and ZTO. Ronald Keung

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China International Capital Corp – Focus on Visible ROE and Shareholder Returns – Buy. We reiterate our Buy rating on CICC-H with a 12m TP of HK$38.2, as we believe stable ROE delivery on incremental Hong Kong capital deployment and visible shareholder returns could support valuation stability and a potential re-rating. While management targets a 15% post-merger ROE in the medium-to-long term, we estimate their current framework of allocating approximately 30% of capital to structurally higher-return Hong Kong businesses can support a sustainable near-term ROE of around 12%. Furthermore, we expect the merged entity will have additional room to increase shareholder distributions, with current earnings generation appearing sufficient to support payout ratios of 15.8% to 34.5% while maintaining book value growth of 7.9% to 10.1%. Shuo Yang

GO – 2027 Driverless Taxi Launch with Waymo – Buy. We view GO’s strategic partnership with Waymo and Nihon Kotsu to launch Japan’s first commercial Level 4 fully driverless taxi operations in Tokyo by 2027 as a positive long-term catalyst. While the initial rollout of 100…