Top global banks upgrade China on stronger growth and surging tech profits

Global investors are becoming more upbeat on China's economy and markets, pointing to firmer growth momentum, improving liquidity and accelerating innovation in the tech sector.

Goldman Sachs has raised its medium-term forecasts, upgrading 2026 GDP growth to 4.8 percent from 4.3 percent and 2027 to 4.7 percent from 4.0 percent, well above consensus. The bank cited strong export performance and expectations that China's next Five-Year Plan will emphasize advanced manufacturing.

JPMorgan has also turned more constructive, lifting its A-share rating to "overweight", a move first reported by Bloomberg. Its strategists said the probability of meaningful gains next year now exceeds the risk of sharp losses, supported by broader AI adoption, steadier earnings and policies aimed at boosting consumption.

UBS has warned of higher global market volatility but remained bullish on Chinese tech stocks. The bank forecasts earnings growth of up to 37 percent next year, highlighting China's rapid progress in AI models and application-driven demand, according to a report by the South China Morning Post. It added that valuations remain "far from expensive" compared with global peers.

Fidelity International has echoed that view, noting that Chinese tech valuations are still deeply discounted, offering room for rerating if profit momentum holds, the South China Morning Post reported.

Analysts say that while China's headline growth remains moderate, stronger domestic liquidity, targeted policy support and rising retail participation are helping stabilize sentiment. Taken together, recent calls from Goldman Sachs, JPMorgan, UBS and Fidelity suggest a clear shift: Major foreign investors are increasingly positioning for stronger growth visibility and a tech-led earnings cycle heading into 2026.