Positive forecasts for China from the Goldman Group

Goldman Group anticipates that Shanghai Stock Exchange Composite Index will grow by 15% by the end of 2012 to approximately 2,750. The main rationale behind the forecasts is the slowing inflation, which in turn provides the Chinese government with the possibility to ease the monetary policy and with the opportunity for businesses to receive more loans from the banks. Wang Hanfend at Gao Hua stated that latter scenario should allow the country to ameliorate its liquidity state as well as boost the value of A Shares.