"Our view is very clear," Kinger Lau, Goldman Sachs chief China equity strategist, told CNBC's "Squawk Box Asia" on Tuesday.
China rebalancingWith just under six weeks of the year remaining, the MSCI China and CSI 300 indexes are both poised for third-straight annual losses.
Goldman Sachs noted both mutual and hedge fund mandates globally are running with multi-year low allocations in Chinese stocks.
Key changesIn their latest outlook paper, Goldman Sachs strategists upgraded the food and beverage sector to overweight from market weight and technology hardware sector to overweight from underweight.
Real estate has been a key driver of the downturn in the Chinese economy after Beijing started cracking down on the debt levels of mainland developers in 2020.
Persons:
Goldman Sachs, Kinger Lau, CNBC's, it's, Lau
Organizations:
Getty, 20th Central Committee, Chinese Communist Party, CSI
Locations:
Beijing, China