Goldman Sachs Turns Bullish on China’s ‘Prominent 10,’ Citing AI and Policy Tailwinds
Goldman Sachs is reportedly growing bullish on a select group of ten Chinese companies, calling them China’s answer to the U.S. “Magnificent Seven” tech giants.
According to a note cited by Investopedia, the banking giant refers to these firms as the “Prominent 10”, highlighting their alignment with strategic themes like AI innovation, global expansion, and tech-driven consumption.
“[These companies] embody the theme of AI/Tech development, self-sufficiency, ‘Going Global,’ services and new forms of consumption and China’s improving shareholder returns,” said Goldman analysts.
The “Prominent 10” Includes:
- Tencent (gaming, cloud, media)
- Alibaba (e-commerce, cloud)
- Xiaomi (smartphones, IoT)
- BYD (EV manufacturing)
- Meituan (local services platform)
- NetEase (online gaming)
- Midea (home appliances)
- Hengrui (pharmaceuticals)
- Trip.com (travel tech)
- ANTA (sportswear)
Goldman forecasts that earnings for these public-owned enterprises (POEs) could rise by 13% annually over the next two years, driven by a combination of AI investment, a supportive regulatory backdrop, and improved capital return frameworks.
Strategic Tailwinds Supporting Growth
The bullish view is underpinned by several macro and policy-level shifts, including:
- Chinese government initiatives to support the private sector
- Regulatory updates facilitating easier mergers and acquisitions
- Valuation advantages, with Chinese equities trading at modest multiples relative to global peers
- A favorable restructuring of domestic capital markets, encouraging POE investment and expansion
Goldman Sachs suggests these factors could revitalize investment appetite across China’s corporate sector and pave the way for organic and acquisitive growth, particularly in sectors aligned with national strategic priorities.
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