Goldman: China AI stocks are 42% of A- and H-share market cap

On October 12, 2026, Wallstreetcn reported on a new Goldman Sachs research note stating that since the "DeepSeek moment" in early 2025, Chinese AI-related listed companies have created nearly $5 trillion in market value through share price gains and IPOs. According to Goldman Sachs, AI stocks now account for 42% of the combined market capitalization of A-shares and H-shares, and 57% of trading volume.

The report divides Chinese AI investment opportunities into two main themes. The first covers export-oriented AI companies, positioned as proxies for the Western AI capital expenditure boom. The second covers domestic-demand-driven AI leaders, which benefit from China's local AI ecosystem buildout and policy support. Goldman Sachs said both themes offer considerable investment value, even as geopolitical and trade policy risks remain.

On market performance, Goldman Sachs data shows that Chinese AI exporters delivered a cumulative return of 126% from early 2025 through June 2026, but have fallen 23% from their peak since the global AI stock pullback in late June. Domestic AI companies proved more resilient during this correction, outperforming by roughly 10 percentage points. Goldman Sachs also updated its "China Select AI Portfolio" of 50 stocks, which has gained 33% since its launch in February 2025, with a Sharpe ratio of 2.23, well above the 0.74 for the MSCI China Index. The report did not include Goldman Sachs' specific outlook for future price moves.