Goldman Sachs China Market Weekly: Market Falls 1% on A-Share Tech Drag; August Manufacturing PMI Rebounds
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Abstract
Goldman Sachs' China strategy weekly (September 4, 2026) reports MXCN down 0.9% and the CSI 300 down 1.3% for the week, dragged by onshore tech: the STAR 50 fell 5.1% and ChiNext 4.0%. Key events included President Xi's attendance at the 26th Shanghai Cooperation Organization summit in Bishkek and his meeting with President Putin, an NDRC coordination meeting on major "six networks" infrastructure projects, the removal of the personal income tax exemption on dividends for foreign individuals (now taxed at 20%), and a new "828" property policy that Goldman's property team believes could materially affect developers' return profiles. August official and unofficial manufacturing PMIs both rebounded; the official non-manufacturing PMI was roughly flat and the unofficial services PMI rose. Southbound Stock Connect inflows totaled $0.9 billion for the week and $49 billion year-to-date. MSCI China's 12-month forward P/E stands at 10.4x (-0.9 s.d. versus the 10-year history), or 12.7x ex-banks (-1.3 s.d.) and 11.7x on a median basis (-1.5 s.d.); the CSI 300 trades at 13.2x (0.4 s.d.). Policy headlines included the ten-ministry 15th Five-Year SME development plan, and a related Goldman piece, "Asia in Focus: Why Beijing May Favor Gradual RMB Appreciation."