China is oversold, says Goldman

A multitude of concerns have overshadowed China’s prospects during 2011, including slowing growth, rising inflation, ballooning local government debt, overheating property prices and mounting bad loans among the banks. But it is not all bad news. Goldman Sachs reckons that China will be able to maintain decent growth during 2012 and 2013, despite some risks remaining.

“We think that China overall growth for next year will continue to be fairly stable and strong,” said Helen Zhu, chief China strategist at Goldman Sachs. Despite revising down the eurozone’s predicted economic growth to -0.8% from 0.1%, Goldman Sachs estimates that China will grow by 8.6% in 2012, which is slightly...