Goldman Sachs says equity investors are skeptical of Chinese companies’ rapid overseas expansion and want to see proof of profitability rather than just growth. Chinese companies’ global market share is expected to rise from around 18% to 31% by 2035, according to research covering over ten sectors including express delivery, industrial robotics, and white goods. Trina Chen, co-head of Greater China equity research at Goldman Sachs, notes that profit margins are often higher abroad, allowing Chinese firms to price lower than local competitors. Geopolitical constraints and market access restrictions weigh on stock performance, and investors severely punish market share losses, with a 10% to 15% decline potentially shrinking market capitalization by 50% to 80%.
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