Goldman Cuts Hong Kong H Shares, Lifts CSI 300 Target to 5,500 on AI Hardware

2 articles · Updated · CNBC · Jun 3

Goldman Sachs downgraded Hong Kong-listed H shares to market-weight from overweight while keeping mainland China A shares overweight, arguing they are the better vehicle for China’s AI hardware boom.
The bank raised its 12-month CSI 300 target to 5,500 from 5,300—implying nearly 12% upside—as most Chinese AI semiconductor firms and suppliers trade onshore and benefit from Beijing’s hardware-focused policy.
Performance has already diverged this year: the CSI 300 is up more than 6% and ChiNext has surged over 25%, while the Hang Seng Index has gained about 1.5% and Hang Seng Tech has fallen more than 5.5%.
Goldman said AI hardware generated 85% of the $3.8 trillion added to Chinese AI equity values since January 2025, while large internet companies have struggled to grow profits.
That tilt could deepen as anticipated chip and humanoid robot IPOs head to mainland exchanges, and some Hong Kong-listed AI model companies plan A-share listings.

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