Goldman Sachs: China equities have the 'best risk vs reward' amidst Iran conflict

• Goldman Sachs retains an 'overweight' stance on Chinese equities, highlighting their energy self-sufficiency and strategic build-out in renewables and electricity grids.
• Chinese A-shares have shown greater resilience, being essentially flat since the conflict's outbreak, compared to other Asian markets like Korea which saw significant declines, partly due to lower foreign ownership and less vulnerability to profit-taking.
• Despite global oil price volatility, China's market is seen as having better risk-reward due to lower valuations, lighter positioning, and expected 14% EPS growth for MSCI China, suggesting it will be a magnet for capital.

Goldman Sachs maintains an 'overweight' stance on Chinese equities, citing their resilience to the Iran conflict and oil price shocks. This is attributed to China's energy self-sufficiency, lower foreign ownership, and favorable valuations compared to other Asian markets. While global markets face volatility, China's domestic focus and earnings stability offer a better risk-reward profile.