Goldman Sachs sees snap back in China stocks

Goldman Sachs Group Inc. is sticking with its bullish view on Chinese stocks in Hong Kong, saying valuations are inexpensive and improving economic data will spur a rebound.

"The snapback in China could be fairly meaningful," Timothy Moe, chief Asia Pacific equity strategist at Goldman, said in an interview Wednesday. "The risk versus reward in terms of what's priced in the market gives us a sense that if we see a stabilisation in macro data, say from here to the end of the year for example, then we could see a decent recovery."